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January 3, 2002 — (WEB HOST INDUSTRY REVIEW) — Verado (verado.com), a Denver-based managed hosting
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provider, announced yesterday that it has cut sixty-three employees at its
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Colorado and California locations. No further details were given in the
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company’s written statement.
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On Nov. 14, Verado announced its financial results for the third quarter of
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2001 ending Sept. 30. Net loss for the quarter was $114.6 million compared
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to $49.2 million for the second quarter of the same year. Included in the
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net loss was a $51.5 million, non-cash impairment charge related to the
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previously announced consolidation of six data centers and a $35.3 million
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net non-cash impairment charge on its remaining two data centers and
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corporate assets. EBITDA from continuing operations for the third quarter of
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2001 was a negative $14.8 million, compared with a negative $16.1 million
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for the second quarter.
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The struggling IDC provider sold the last of its non-core operations on Oct.
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5 to Denver startup Huge Hosting. The company’s stock has dropped from a
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high of $37 a share shortly after its March 2000 IPO to a recent low of
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0.032 cents.
