Troubled UK internet technology firm InterX has surprised the City with losses that were sharply higher than anticipated. The company said pre-tax losses trebled to £60.6m for the 11 months to 30 June, compared with a shortfall of £20.6m during the previous 12 months.
The company blamed its poor results on the current market downturn and admitted dramatically over-estimating the value of the internet software sector: it only has one reference customer for its latest InterX Net 2002 customer relationship management product.
"The market was so big last year, we thought that we could get a small percentage of it and do good business," said chief executive Simon Barker. "But conditions changed and the gold rush attitude towards developing complex online systems evaporated."
InterX has slashed its monthly expenditure in a cost-cutting programme that saw 58 staff axed this year, but is still burning £1.1m per month. The firm's broker, ING Barings Charterhouse Securities, predicted that the company would not break even before June 2003.
According to UK sources, InterX is trying to distance itself from the online content market. It is apparently in negotiations to sell off its 30 per cent stake in the cw360.com IT site that runs the beleaguered firm's technology.
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