MERGERS & ACQUISITIONS
Sprint, Nextel to Complete Merger Friday
Sprint said it will complete its acquisition of Nextel Communications on Friday and begin trading as a unified stock on Monday. It will become the third-largest wireless provider in the country, after Cingular Wireless and Verizon Wireless. The companies still have to work out disagreements with affiliates who claim Nextel's addition will lead Sprint to violate agreements it made in the 1990s not to compete with them in their territories.
GSE Systems of Columbia, which provides training software used by nuclear and fossil-fueled power plants, lost $556,000 (6 cents a share) in the second quarter, compared with a profit of $276,000 (3 cents) a year earlier. Revenue declined 12 percent, to $6.7 million. The company said the results reflected fewer new orders and the delay of two international contracts.
GTSI, a Chantilly company that sells information technology to government agencies, said its loss widened to $8.1 million (88 cents a share), from $1.6 million (18 cents). Sales fell 33 percent, to $160.7 million, a result it blamed on serious problems with its enterprise-resource planning system, which the company says is now working properly. Shares closed at $7.56, down 9 cents.
InteliData Technologies of Reston, a provider of electronic bill-payment technologies, had a second-quarter loss of $1.4 million (3 cents) on $2.4 million in revenue, compared with a loss of $27.4 million (53 cents) on $3.7 million. The company said its planned sale to Corillian is expected to close this month.
QuadraMed, a Reston technology company, second second-quarter profit fell to $1.3 million (zero cents), compared with a $9.7 million loss (28 cents). Revenue rose slightly, to $30.7 million.
USA Mobility, an Alexandria provider of wireless messaging services swung to a loss of $2.6 million (10 cents a share) in the second quarter from a profit of $3.1 million (15 cents) a year earlier because of non-recurring severance and related costs of $9.4 million. Revenue grew 36 percent, to $157.5 million.
XO Communications of Reston narrowed its second-quarter loss to $29.5 million (18 cents a share), from $43.8 million (31 cents). The improvement came from savings from combining with Allegiance Telecom, acquired last year, and a $10.5 million settlement with another carrier. Revenue grew 30 percent, to $362 million.
Compiled from staff and news service reports.