DSL.net revenue increases 62 percent, but loss widens

Business DSL provider DSL.net posted impressive revenue gains for the third quarter, but widened its loss year over year.

The carrier reported Q3 2003 revenues of $18.2 million, up 62 percent from the year ago quarter. Gross margins also increased by 62 percent for the same period, growing from $3.2 million to $5.5 million, though the company posted a net loss of $9.1 million, 8 percent more than the loss it reported for the third quarter of 2002.

However, DSL.net saw a 1 percent decline in its net loss year to date, and company officials said non-cash write-offs affected its results for the quarter.

DSL.net also received a cash infusion of $30 million from Deutsche Bank during the quarter. It ended September with total assets of $69.9 million and $21.1 million in cash, but only $27 million in debt thanks to a debt renegotiation earlier in the year.

DSL.net also lowered its EBITDA loss to $2.6 million in the third quarter from $3.0 million in the same period last year.