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MindSpring tops 1Q target
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April 27, 1999: 6:08 p.m. ET
Revenue soaring 188 percent, ISP beats estimates excluding Netcom buyout costs
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NEW YORK (CNNfn) - Internet service provider MindSpring Enterprises Inc. topped analysts' targets for operating income in the first quarter, buoyed by a 188-percent increase in revenue as its membership rolls ballooned.
Excluding a buyout-related expense, the Atlanta-based company posted a net loss of $3.3 million, or 12 cents per share, in the quarter ended March 31, compared to income of $860,000, or 4 cents a share, a year ago.
Total revenue soared 188 percent from the first quarter a year ago, to $61.7 million.
Excluding the amortization charges for two recent buyouts, MindSpring posted earnings per share of 16 cents a share. That bested the 13 cents analysts had expected, according to First Call Corp.
The one-time charges -- $237 million for Netcom and $32 million for Sprynet -- will be accounted for over three years and will turn up on each of its quarterly reports in that span.
MindSpring executives credited the better-than-expected results to continued growth of its membership and employment rolls.
"We added far more customers and employees in the first quarter of 1999 than in any other quarter of our history," Charles Brewer, MindSpring's chairman and chief executive officer, said in a statement.
"Our customer base increased by 67 percent from the prior quarter, and we surpassed the 1 million customer mark," he added.
In Nasdaq Composite trading prior to the report's release, MindSpring (MSPG) fell 8-5/8, or 7 percent, to 116-5/16 Tuesday. 
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MindSpring Enterprises
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