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TenFold Inc. reports net loss of $6.5 million for the quarter

SHARE TenFold Inc. reports net loss of $6.5 million for the quarter

TenFold Corp. had a net loss of $6.5 million, or 19 cents per diluted share, for the quarter ended June 30. That compares with earnings of $1.1 million, or 3 cents per share, for the same quarter a year ago.

The Salt Lake City-based company, which provides large-scale e-business applications, said Monday the net loss was $5.3 million, or 16 cents per share, when excluding acquisition-related costs.

Revenues for the quarter were $26.4 million, up 38 percent compared to the year-ago period.

For the first half of the year, the company lost $4.3 million, compared to net income of $1.4 million for the first half of 1999. Excluding acquisition-related costs, the first-half net loss was $2.3 million this year. Revenues were $58 million, up 66 percent over revenues of $35.1 million for the prior-year period.

"We increased our expenses in anticipation of higher sales, yet experienced longer-than-expected sales cycles and delays on some existing projects," TenFold President and CEO Gary Kennedy said. "We are working to address both the sales and delivery issues. We expect revenues for the next two quarters to be lower than originally anticipated based on extended sales cycles and recent project delays. However, we expect to return to profitability in the fourth quarter of 2000."

The acquisition-related costs include those for the acquisition of the LongView Group Inc. In the second quarter, TenFold recognized $1.2 million in amortization expense of acquisition-related intangibles.

The company on Monday also announced Martin Petersen and Nancy Harvey have joined the company in senior management positions. Petersen, chief financial officer, formerly was vice president and treasurer of Huntsman Corp. He succeeds Robert Hughes, now a senior vice president and CFO of a TenFold subsidiary. Harvey, chief operating officer, previously was executive vice president of Computer Science Corp.'s Healthcare Group. She succeeds William Conroy, who left the company to pursue other interests.