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Digex Loss Narrower Than Expected




reported a narrower-than-expected fourth-quarter loss Thursday. But the Web hosting service said it expects first-quarter and year-end losses to be higher than analysts are expecting.

For its fourth quarter ended Dec. 31, Digex lost $41.4 million, excluding special charges, or 65 cents a share, compared with a loss of $22.4 million, or 36 cents a share, in the year-ago period. Seventeen analysts surveyed by

First Call/Thomson Financial

expected the company to report a loss of 69 cents a share.

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Beltsville, Md.-based Digex posted fourth-quarter revenue of $57.9 million, a 168% increase over $21.7 million posted in the same quarter one year ago.

For fiscal 2001's first quarter, the company expects revenue between $53 million and $54 million and a loss of approximately 73 cents to 77 cents a share. According to First Call/Thomson Financial, 14 analysts expect the company to lose 71 cents a share in its first quarter.

The company also projected fiscal 2001 revenue of $285 million to $295 million and a loss of $2.60 to $2.65 a share. Analysts, on average, foresee a loss of $2.59 a share for the year.

Shares of Digex were recently down 94 cents, or about 3.4%, at $26.50 in early


trading Thursday.