USOL Holdings blames reporting deficit as of Sept. 30 on increased selling, general and administrative expenses related to a continuing expansion of vital infrastructures for US OnLine and The ResidentClub. The loss also reflects depreciation and amortization expenses. Common shareholders' net loss totals about $16.2 million, or $2.16 per share, in comparison to nearly $6.8 million, or $1.83 per share, last year.

On a brighter note, third-quarter revenue has jumped 75% to a record $2.7 million, up from about $1.6 million for third quarter 1999. This year's third-quarter net loss is slightly above $3.9 million versus last year's third-quarter tally of about $1.6 million. The affect on shareholders equates to 64 cents per share for the third quarter, a 32-cent drop from last year.

USOL is reporting a year-to-date revenue increase of 70%, registering about $7.4 million in comparison to nearly $4.4 million for the comparable period in 1999. Quarterly and nine-month revenue increases are being attributed to continued growth in the number of residential passings being signed by the US OnLine subsidiary.