European ASP bitten by expansion costs

But Siennax still sidesteps short-term worries...

But Siennax still sidesteps short-term worries...

European ASP Siennax has announced soaring losses in its full-year 2000 results, up fifteen-fold on the previous year. The company - by most estimations Europe's largest homegrown pure ASP - reported losses of E7.7m (£4.64m) in 2000, compared to losses of just E0.5m (£0.3m) in the previous year. It says the increased costs come from marketing and set-up costs related to international expansion. At the same time Siennax saw its revenue rise 47 per cent to over E3m (£1.8m), signing up almost 15,000 new users. In addition it claims to have won a further 15,000 users since the end of its financial year. ASPs are currently dealing with the dual problems of a lack of confidence in the international economy, and a large degree of cynicism about the ASP model itself, which many feel has so far failed to fulfil its promise. However, Netherlands-based Siennax has managed to sidestep financial worries in the short-term with a E14m (£8.4m) fillip from European investors in March this year.