Cyberbase saw interim revenues jump $22 million to $46.5 million for the six months ending September 30, but operating losses tripled to nearly $38 million versus the $12 million lost last year. The company still ended up posting better net figures this year due to exceptional items. Net loss was reported at $16 million (1.8 cents per share) versus last year's $64 million (11.4 cents per share). The contrast to last year's results are not exactly a good comparison as they essentially measure different businesses; nevertheless, the interim loss figures are valid for evaluating the progress of the new business.
Cyberbase still counts, at least for the time being, property sales as core business revenues. $16 million of the above-mentioned $22 million increase are from the disposal of two properties. For the second half of the fiscal year, this will be repeated as the company has already booked another $23 million in property sales.
Not only did property boost revenues, but the company also reversed provisions for bad loans for a $20 million windfall. If we disregard the exceptional gain and drop the property sales from their turnover, the company would have reported a $54 million interim loss (negative 6.18 cents per share).
By the end of 1999, Cyberbase had already spent $156 million in purchasing various internet ventures such as 2.4% of Chinadotcom, 15% of a US company oCen Communications, 20% of local GEM hopeful Asian Information Resources, and half of a Beijing JV. The $194 million proceeds from an October placement have been nearly used up. As long as the company continue to lose money on core operations and rely on property to boost the figures, this company will not succeed in achieving its goal of being "the leading Asian partner in building a Connected Society for providing Internet solutions services." To accomplish its stated goal, the company will have to build its position much more quickly and aggressively. This means raising more capital and staying in the red for a longer period of time. The long-term future is hard to predict, and though the company may prove successful, Quamnet suggests that other companies may be more appropriate for most investors.