Terremark Posts Larger 3Q Loss

MIAMI (AP) - Information technology company Terremark Worldwide Inc. said Friday its fiscal third-quarter net loss widened due to higher expenses, even though revenue grew sharply.

Terremark agreed to be sold to Verizon Communications Inc. for $1.4 billion, or $19 per share, in January.

For the three months ended Dec. 31, the company posted a net loss of $15 million, or 23 cents per share, compared with a loss of $8.3 million, or 13 cents per share, in the same period a year earlier.

Revenue rose 27 percent to $94.3 million from $74.3 million.

Analysts, on average, were expecting a narrower loss of 10 cents per share, but lower revenue of $90.8 million, according to data from Factset.

The company's operating costs jumped 26 percent to $85.2 million. Terremark also booked other expenses totaling $23.2 million in the latest quarter. This is up 67 percent from $13.9 million a year earlier.

For the current fourth quarter, Terremark forecast revenue of $93.8 million to $96.8 million. Analysts are expecting $97.8 million.

Shares edged up 1 cent to $18.97 in after-hours trading.