Internet Gold

(Nasdaq:IGLD) reported its results for the first quarter of 2001 today, showing rising revenues and shrinking losses.

But the company also announced dismissals, consolidation of management positions and the termination of various ventures.

First quarter revenues climbed to a record $13.8 million, 84% up from the $7.48 million posted for the first quarter of 2000. Against the fourth quarter of 2000, revenues increased by a less impressive 3%.

The company announced that about 45% of its first-quarter revenues were derived from non-access activity. It also said its subscriber base grew to 321,435, including 2,309 business subscribers, 60% up from the parallel.

Closing in on black ink

Internet Gold titled its press release "Closer to Profitability". Maybe it is, but red ink is red ink. The company lost a net $2.6 million, compared with $3.2 million in the parallel quarter of 2000 and $5.1 million in the fourth quarter of 2000.

Per share, Internet Gold lost 15 cents, compared with 17 cents in the parallel.

CEO Eli Holtzman stated he believes the company will attain the milestone of black ink in the fourth quarter of 2001. He specified how the company would get there.

"These measures includes a reduction in the company's workforce as well as a reorganization in the company's management team, including consolidation of positions and promotions from within the company," he said.

"Another significant measure the company is undertaking is the closing of all non-profitable ventures, including the most recent decision to close the B2B venture based on Commerce-One technology in which we held a 15.05% interest.

"Due to the mentioned above, in this quarter's financial results we incur one time charges of over $400,000," Holtzman stated.

He did not say how many workers faced the ax, but today Internet Gold's workforce stands at 700 people.