Up and Down with Leapnet

Leapnet, a Chicago-based i-shop, said this morning that first quarter revenues rose 20 percent, to $9.4 million, against a year ago, while its net loss grew to $15.5 million from $2.2 million in the same period last year. Leapnet said its first-quarter losses included a $3 million non-cash charge related to its acquisition last May of SPR Inc., an IT consulting company. Additionally, the company paid a $3.5 million restructuring charge associated with its recent round of layoffs and closing of some facilities.

“Though we’re disappointed that we didn’t achieve the growth we would have liked,” said Leapnet president and COO Stephen J. Tober, “we’re nevertheless focused on keeping our pipeline filled with market-leading Fortune 1000 clients, which is difficult in light of the current economic slowdown.”

In the first quarter, Leapnet announced plans to sell certain assets of Planet Leap, its globalization unit, to Berlitz GlobalNet. The company also let go 60 employees, or 13 percent of its payroll, and restructured its facilities to improve operating margins.