Axia NetMedia Corp. is selling three of its subsidiaries in a drive to become profitable during fiscal 2003.
Axia said Parallel Strategies, a communications company; Lifeskills, an organizational performance company; and Dual Media Inc. Marine Group in Ontario are on the block because they don’t fit with its current focus on interactive network services and e-learning applications.
The move comes in the wake of disappointing first-quarter results that saw the Calgary-based company incur a higher net loss of $5.6 million ($0.16 per share) compared with $4.2 million ($0.13 per share) in the first quarter of fiscal 2002.
Axia blamed the Q1 results on delays in Alberta SuperNet construction revenue, sluggish sales in its other interactive network operations and a number of one-time expenses of almost $1 million, including severance costs.
Axia said it expects these SuperNet revenues to flow during the current fiscal year and for the company to reach a level of sustainable profitability.
The SuperNet is an initiative of the provincial government to link 4,700 libraries, schools, hospitals and provincial government offices in 422 communities by 2004.
The province is investing a maximum of $193 million over three years to build the network. As prime contractor for the build, Bell will invest $102 million to build the base area, the portion of the network linking 27 large communities.
The extended area includes those facilities located in 395 of Alberta’s smaller communities. Axia SuperNet Ltd. has been subcontracted by Bell to build the network’s extended area.
Commercial service providers in areas that currently do not have high-speed connectivity options will be able to access the SuperNet, bringing broadband services to most Alberta businesses and residences.
