Conferencing Boom Is Boon To WebExConferencing Boom Is Boon To WebEx

Online meetings and conferences are among the few areas that got a boost from the events of Sept. 11, as companies look for alternatives to business travel. Those adjusted priorities appear to have taken permanent hold, much to the delight of companies such as WebEx Communications Inc.

WebEx posted year-end earnings Tuesday that demonstrated the market has gotten even stronger. Revenue for the year was up 72% from 2001, significant losses in 2001 have turned into healthy profits, and the company expects 2003 to be another banner year. The online conferencing market got an ominous validation last month when Microsoft agreed to purchase WebEx rival PlaceWare Inc. for a reported $200 million.

For the year ended Dec. 31, WebEx reported a profit of $16.6 million, or 41 cents a share, on revenue of $139.9 million. That compares with a loss of $27.6 million, or 76 cents per share, on revenue of $81.2 million a year ago. Fourth-quarter revenue was $40.3 million, up 56% from $25.9 million during the fourth quarter of 2001, the company's first full post-Sept. 11 quarter. WebEx execs expect revenue of about $200 million for 2003.