Zmax Looks Beyond Y2K

Zmax Corp. of Germantown laid out its plans to move away from its core year 2000 business, one of many systems-consulting companies that are preparing for the day the Y2K glitch gravy train ends.

Zmax is even changing its name. Effective Jan. 1 it will call itself WidePoint. The company hopes to become a full-service e-commerce consulting firm focusing on World Wide Web work.

"Our re-engineering legacy in year 2000 work has given us a platform to begin providing enterprise application integration services to our existing high-profile customers," Michael C. Higgins, chief executive, said in a statement. "We believe this area offers enormous growth potential for our company."

On Friday, the company reported a 212 percent increase in revenue, to $8.1 million, in the third quarter ended Sept. 30. Net income for the quarter was $1 million, up 137 percent. Nine-month revenue totaled $20.2 million, up 206 percent. The company employs 200.

AppNet Sets New Offering

Five months after going public, AppNet Inc. filed with the Securities and Exchange Commission on Oct. 28 to sell 4 million shares of stock in a secondary offering, hoping to raise more than $200 million.

The Bethesda e-commerce company said 2.5 million shares will be sold by existing shareholders, mostly former owners of companies acquired by AppNet.

The offering's underwriters, Credit Suisse First Boston, Hambrecht & Quist, First Union Securities and the Robinson-Humphrey Co., have an over-allottment option of up to 600,000 shares.

The stock of AppNet, which has annualized revenue of $61 million and 755 employees, has been on a rocket since June, when it went public at $12. It now hovers in the $45 range.

Survey Lists 2 Reston Firms

Proxicom Inc. and CareerBuilder Inc. were among 12 Internet companies cited in a recent University of Texas research report as prime examples of companies using the Internet in forward-thinking ways.

The study, "Measuring the Internet Economy," was sponsored by Cisco Systems Inc. The study argued that the "Internet economy" grew 68 percent in the first quarter of 1999, compared with the same quarter in 1998, adding $507 billion to the U.S. economy.

Proxicom of Reston was described in the report as "the `go to' Internet consulting firm." CareerBuilder, also based in Reston, was at "the forefront of an online recruiting revolution."

Results of the Texas study and company case studies are available at the World Wide Web site www.internetindicators.com.