Return to Virginia Business - April 2001

Cover Story
Companies to watch

Related stories:
• It Really Is That Bad
• Highflyers Hit Hard Times
• The High-Tech Way of Giving
• Lessons from the Dot-Com Crash
• Chart: Tech Firms and Red Ink
• Chart: Profitable Tech Firms

webMethods
Fairfax-based software company had first profit ever in last quarter of 2000 — $2.7 million on $60 million in revenue — and picked up 85 new customers. The reason, says CEO Phillip Merrick: clients need its software to cut costs in a sour economy. Stock peaked at $308 last March; now hovering around $30.

Etensity
Vienna-based Web design and consulting firm formed in 1999 bought McLean-based OneSoft in January. CEO Peter Noce promises company will turn a profit in first quarter. Pushed hard to cut costs with layoffs in November and after OneSoft purchase.

XO Communications
Cash tight? Not for Reston-based firm, which raised $517.5 million in January with help from billionaire investors Theodore Forstmann and Craig McCaw. Has also announced plans to cut expansion in half; will focus on building fiber-optic networks. Predicts a profit in 2004; ability to raise cash has analysts betting it will survive the shakeout.

Data: Virginia Business

Return to Virginia Business - April 2001