Internet Capital Edges Higher After Meeting Q1 Goals

Internet Capital Group (Nasdaq: ICGE) picked up 29 U.S. cents to $3.41 in morning trading Thursday, after thecompany said it met its goals for the first quarter, ending the period with$264 million in cash, short-term investments and available securities.

The Wayne, Pennsylvania-based Internet incubator said its 15 developedpartner companies generated $61 million in revenue in the quarter endedMarch 31st, up 231 percent from a year earlier.

Internet Capital said itsstakes in the companies had a market value of more than $320 million as ofquarter’s end.

“By increasing financial flexibility and actively focusing on our keypartner companies, ICG is well positioned to succeed in these challengingmarkets,” said president and chief executive officer Walter Buckley. “Thecontinued progress of our key partner companies is evidence of theincreasing adoption that we’re seeing in the B2B arena.”

Internet Capital shifted its focus last year, concentrating on those partnercompanies deemed to have the greatest potential for success. The companysaid it sold its stakes in five ventures during the first quarter, receivinga total of $28 million in return.

Internet Capital said its remaining partner companies narrowed theiroperating losses to $104 million in the first quarter from $117 million inthe fourth quarter.

Pro forma aggregate net revenue for all partnercompanies totaled $209 million, up from $102 million a year earlier andahead of the $193 million in the fourth quarter.

Overall, Internet Capital posted a pro forma loss of $185 million, or 66 centsper share, compared with a loss of $35 million, or 13 cents, in theyear-earlier quarter.

The company also took a $1.2 billion charge in thelatest quarter to cover adjustments to the carrying values of some assetsand the sale of the RightWorks to i2 Technologies (Nasdaq: ITWO). The netloss totaled $1.7 billion, or $6.06 per share, compared with net income of$352 million or $1.30.

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