Critical Path Reports $42.3-Million Loss

Critical Path Inc. reported an operating loss of $42.3 million, or 59 cents a share, for the first quarter, far larger than the 26-cent loss analysts expected, after it was rocked by an accounting scandal that caused it to restate results for the second half of 2000.

In the year-earlier quarter, the Internet messaging and infrastructure software maker lost $16.8 million, or 33 cents. Revenue rose 10.5% to $27.2 million.

Shares of San Francisco-based Critical Path’s stock price settled at $1.17 in extended trade after finishing the regular session 8 cents higher at $1.65 on Nasdaq before the news.