PSINet (Nasdaq: PSIX) fell 2 11/16 to 11 3/4 Friday after the company offered guidance on third quarter results and said it will need to raise cash next year.
PSINet said it expects earnings before taxes, depreciation and amortization to total $5 to $15 million for the second half of this year, on revenue of $920 to $960 million.
Though the results are better than year-earlier levels, the company said they include adjustments to reflect slower-than-expected growth in some businesses, as well as a soft quarter for Xpedior (Nasdaq: XPDR), a company 80 percent owned by PSINet. Xpedior fell 1/4 to 5 3/16 Friday.
PSINet said it will end the year with $500 million in cash and equivalents, and will need to raise another $600 million next year to meet “continued strong demand” for its Web hosting business.
The company said it expects to be able to raise the money through a variety of means, including possible asset sales.