VIA NET.WORKS, Inc. (Nasdaq: VNWI; EASE), which on 9 August announced that it had entered into definitive agreements to acquire the continental Europe operations of PSINet Europe, today released financial results for the second quarter and first six months of 2004. The significant developments for this period were as follows:

Revenue in second quarter 2004: $18.3 million, compared with $16.6 million in the second quarter 2003
Revenue in first half 2004: $36.5 million, compared with $34.4 million in the first half of 2003
Total operating expenses in second quarter 2004: $29.1 million, compared with $26.8 million in the second quarter 2003
Total operating expenses in first half 2004: $57.7 million, compared with $52.9 million in the second half 2003
Second quarter and first half 2004 results impacted materially (compared with 2003) by movements in currency exchange rates
Cash balance at June 30, 2004: $42.3 million and $1.4 million restricted cash, compared with $46.9 million and $1.4 million restricted cash, at March 31 2004
Continued strong growth in Amen revenues, reaching 12% of total revenues in the second quarter
Successful launch of VIA Express at Tech.Ed; commercial launch in VIA’s German operation expected late August
Performance in Second Quarter and First Half 2004

Operating Performance

VIA reported its net loss in the second quarter was $11.5 million, or 19 cents per share, compared with a net loss of $5.7 million, or 10 cents per share, in the second quarter of 2003. For the first six months of 2004, its net loss totaled $21.3 million, or 35 cents per share, compared with a net loss of $11.2 million, or 19 cents per share, for the first half of 2003. The company said the widened net losses in the three- and six-month periods of 2004 were attributable primarily to unrealized foreign exchange gains and losses. In the second quarter of 2004, these losses totaled $0.6 million, compared with gains of $4.7 million in the second quarter of 2003. In the first six months of 2004, the negative impact on results was $3.9 million, compared with a gain of $7.3 million in the first half of 2003. The following table further illustrates these impacts as a result of the movements in foreign currency exchange rates: