Despite a “huge amount of energy” spent on a fractious contract dispute with Bell West, Calgary-based Axia NetMedia Corp. says it is back on track and will no longer be financially exposed as a result of having unsecured receivables from the Alberta SuperNet’s prime contractor.

In a conference call with shareholders and analysts last week to discuss third-quarter results, Axia chairman Art Price said the company is “fully organized” for its remaining construction-related duties and operational responsibilities on the SuperNet, a $300-million network that will connect Alberta cities and towns with high-speed fibre-optic cable.

“The SuperNet services will be turned up as soon as Bell West completes its responsibilities,” Price added, noting the network’s rollout schedule is now between Bell and the provincial government.

The dispute with Bell West, which earlier this year abruptly terminated its subcontract with Axia to build the rural portion of the network at a cost of $10 million, made a significant impact on the Calgary firm’s third quarter, said Price.

“Bell’s actions damaged Axia’s operations and became threatening to Axia’s survival. Consequently, Axia’s senior executive has been entirely focused on keeping the company stable and finding a solution,” Price said in a statement earlier in the week.

Axia (AXX-TSE) has agreed to drop its rights to continue with its subcontract, and will continue to manage the network under a separate 10-year contract with the government. The company’s claim for damages arising from the contract’s termination will be determined by an arbitration process.

Axia president Murray Wallace said the company’s liquidity situation has improved significantly with an $11-million payment by the Alberta government for the receivables due from the SuperNet subcontract, reducing bank debt and accounts payable by $7.8 million.

“Our financial condition has been improving throughout this fiscal year,” he said.

Third-quarter revenue was $28.6 million, compared to $39.5 million for the same period last year, a drop of 28 per cent.

Axia incurred a net loss of $2 million or $0.05 per share, compared to a net loss of $400,000 or $0.01 per share in 2002.