Internet Capital to Cut 35% of Staff; Third-Quarter Loss Widens

Internet Capital Group (ICGE), which has seen its shares plummet more than 90% in the past year, announced several cost-cutting moves Wednesday, including the elimination of 35% of its work force.

The company also reported a third-quarter loss of $263.9 million, or 94 cents a share, compared with a loss of $15.3 million, or 7 cents a share, in the year-ago period. Results for both periods include sales and write-downs of assets. First Call/Thomson Financial lists no consensus earnings estimate for Internet Capital.

Revenue rose to $16.5 million from $7.2 million.

ICG, which is based in Wayne, Pa., is an Internet incubator that owns dozens of companies in the hard-hit business-to-business e-commerce sector. In addition to announcing layoffs, the company said Thursday that its European and Japanese operations would be spun off into separate entities that would seek external financing. ICG would continue to hold stakes.

ICG's chief executive, Walter Buckley, said the company would take "decisive action" to strengthen its financial position, including a reduction in holdings. "We believe that giving more attention to a smaller number of companies will . . . generate greater shareholder value," he said in a statement.

The company's shares were quoted after hours at $13 on the Island ECN. The 52-week high is $212.

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