Vsource Reports Net Loss, No Revenue in 1st Quarter

Vsource Inc. in Ventura, which sells a software program allowing businesses to make purchases on the Internet, had no revenue in its first quarter ended June 13 and suffered a net loss of $5.8 million.

The company reported revenue of $4,060 for the same quarter a year earlier, and a loss of $333,587. The net loss per share was 80 cents for the most recent quarter, compared with a three-cent loss for the first quarter of 1999.

Company officials said the most recent loss reflects increased research and development expenses, sales costs, and general and administrative expenses incurred in developing and marketing its primary product, VSN.

“This was a transition quarter for us,” said Chief Executive and Chairman Robert “Jay” McShirley. “We have nearly completed the final phase of our development work, while launching several commercial applications of VSN. A strong management team is in place and our marketing and advertising program was launched.”

McShirley said the company has developed a working relationship with IBM for client implementation support and has several strategic partnering agreements. “We closed a $7-million private offering and made application for listing with the Nasdaq National Market,” McShirley said.

VSN allows companies to create an Internet-based procurement system to automate all aspects of corporate procurement, such as material requisitions, proposal requests and direct orders from supplier catalogs or contracts.