Excite@Home Warns of 1st-Quarter Losses

Internet services firm Excite@Home Corp. warned for the second time this year that its first-quarter results will miss expectations because of the weak advertising market and said it needs $75 million to $80 million on top of its cost-cutting efforts to take it through the end of the year. The Redwood City, Calif., company also said it expects “significantly lower revenues, greater operating losses and more rapid use of cash than previously forecast for the balance of 2001.” Excite@Home, which said it probably will take an impairment charge associated with the media businesses in the first quarter, expects to post a loss of 14 cents to 15 cents per share, excluding amortization of goodwill and other nonoperational items, for the first quarter. Analysts on average had expected a 13-cent loss, according to First Call/Thomson Financial. The company had warned in January that it expected a loss of 13 cents to 14 cents on lower revenue for the period. The company also said it expects first-quarter revenue of $140 million to $145 million, up from $138 million a year earlier. Shares of Excite@Home closed down 80 cents, or more than 16%, at $4.07 on Nasdaq.