Via Net.Works Sells Three Subsidiaries

ISP and Internet business services manager Via Net.Works sold its operations in Argentina, Brazil, and Austria. Subsidiaries in Brazil and Austria were sold to their management teams.

by dc.internet.com Staff [June 12, 2002]

In Austria, Via Net.Works sold its operation to the existing management team.. The company's Brazilian subsidiary was also sold to its management team while the Argentine operation was sold to Datco S.A., a technology infrastructure provider with operations in Argentina and Chile.

All three dispositions were completed through stock deals. Other terms were not disclosed.

"These divestitures represent further progress in our turnaround plan that is focused on significantly reducing our cash burn and driving the company towards profitability," said Karl Maier, acting CEO of Reston, Va.-based Via. "They also allow us to focus more intently on our core country operations. We are pleased with our turnaround progress to date and will continue to take actions that allow us to achieve our operational and financial objectives."

The company suffered heavy losses last year, posting a loss of $135.2 million, or $2.25 a share, during the three months ended Dec. 31, compared with a loss of $19.9 million, or 33 cents a share, during the same period last year. Via's revenue slid to $19.8 million, compared with $26.9 million for the quarter last year.

More than half of its clients are small and midsized businesses. Via provides services including webhosting, server colocation, virtual private networks (VPNs), and e-commerce services. The company connects these local operations to its international, IP-based network, which is largely made up of capacity leased from carriers.

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