<PAGE>

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                   FORM 10-Q

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
        ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2001 OR

[ ]TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
                                   ACT OF 1934

                        Commission file number: 000-29391

                               VIA NET.WORKS, INC.
             (Exact name of registrant as specified in its charter)

             Delaware                                   84-1412512
  (State or other jurisdiction            (I.R.S. Employer Identification No.)
of incorporation or organization)

                       12100 Sunset Hills Road, Suite 110
                             Reston, Virginia 20190
                    (Address of principal executive offices)

       Registrant's telephone number, including area code: (703) 464-0300

          (Former name or former address, if changed since last report)

Indicate by check mark whether the registrant: (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such report) and (2) has been subject to such
filing requirements for the past 90 days. Yes [X] No [ ]

As of November 1, 2001, there were outstanding 54,872,733 shares of the
registrant's common stock and 5,936,667 shares of the registrant's non-voting
common stock.
<PAGE>

                              VIA NET.WORKS, INC.
                               TABLE OF CONTENTS
                                  (UNAUDITED)

<TABLE>
<CAPTION>
PART I FINANCIAL INFORMATION

<S>  <C>                                                                             <C>
Item 1. Financial Statements:

        Consolidated Balance Sheets as of December 31, 2000 and
          September 30, 2001.......................................................   3

        Consolidated Statements of Operations for the three and nine months ended
          September 30, 2000 and 2001..............................................   4

        Consolidated Statements of Cash Flows for the nine months ended
          September 30, 2000  and 2001.............................................   5

        Notes to the Consolidated Financial Statements.............................   6

Item 2. Management's Discussion and Analysis of Financial Condition and Results
          Of Operations............................................................  11

Item 3. Quantitative and Qualitative Disclosures About Market Risk.................  18

PART II. OTHER INFORMATION.........................................................  19

Item 1.  Legal Proceedings.........................................................  19

Item 2.  Changes in Securities and Use of Proceeds.................................  19

Item 3.  Defaults Upon Senior Securities...........................................  19

Item 4.  Submission of Matters to a Vote of Security Holders.......................  19

Item 5.  Other Information.........................................................  19

Item 6.  Exhibits and Reports on Form 8-K..........................................  19

SIGNATURES.........................................................................  20

EXHIBIT INDEX......................................................................  21

</TABLE>




                                      -2-
<PAGE>

                                     PART I

Item 1. Financial Statements

                               VIA NET.WORKS, INC.
                          CONSOLIDATED BALANCE SHEETS
                (In thousands of U.S dollars, except share data)


<TABLE>
<CAPTION>
                                                                               December 31,  September 30,
                                                                                  2000           2001
                                                                                  ----           ----
                                                                                              (Unaudited)
<S>                                                                            <C>           <C>
ASSETS
Current assets:
 Cash and cash equivalents                                                     $ 237,839     $ 163,523
 Trade and other accounts receivable, net of allowance of $3,623 and $9,172,
 respectively                                                                     16,570        16,913
 Other current assets                                                              5,228         5,633
                                                                               ---------     ---------

           Total current assets                                                  259,637       186,069

Property and equipment, net                                                       39,227        43,873
Goodwill and other acquired intangible assets, net                               181,082       106,431
Other noncurrent assets                                                            1,202           978
                                                                               ---------     ---------

           Total assets                                                        $ 481,148     $ 337,351
                                                                               =========     =========

             LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
 Accounts payable                                                              $  21,866     $  13,312
 VAT and other taxes payable                                                       2,332         1,248
 Current portion of long-term debt                                                 3,265         2,537
 Deferred revenue                                                                 14,360        12,723
 Other current liabilities and accrued expenses                                   11,852        16,707
                                                                               ---------     ---------

           Total current liabilities                                              53,675        46,527

Long-term debt, net of current portion                                             1,894           328
                                                                               ---------     ---------

           Total liabilities                                                      55,569        46,855

Commitments and contingencies                                                          -             -

Minority interest in consolidated subsidiaries                                       597             -

Stockholders' equity:
 Common stock, $.001 par value; 125,000,000 shares authorized; 54,061,998 and
 54,908,233 shares issued and outstanding; respectively                               54            55
 Non-voting common stock, $.001 par value; 7,500,000 shares authorized;
 6,770,001 and 5,936,667 shares issued and outstanding; respectively                   7             6
 Additional paid-in capital                                                      558,196       558,300
 Treasury Stock, $.001 par value; 0 and 510,311 shares; respectively                   -          (671)
 Accumulated deficit                                                            (113,693)     (249,392)
 Deferred compensation                                                            (6,409)       (4,002)
 Accumulated other comprehensive loss                                            (13,173)      (13,800)
                                                                               ---------     ---------

      Total stockholders' equity                                                 424,982       290,496
                                                                               ---------     ---------

      Total liabilities and stockholders' equity                               $ 481,148     $ 337,351
                                                                               =========     =========

</TABLE>

The accompanying notes are an integral part of these consolidated financial
statements.


                                      -3-
<PAGE>

                               VIA NET.WORKS, INC.
                      CONSOLIDATED STATEMENTS OF OPERATIONS
        (in thousands of U.S. dollars, except share and per share data)
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                            For the three months ended  For the nine months ended
                                                                     September 30,            September 30,
                                                                     -------------            -------------
                                                                   2000        2001        2000          2001
                                                                   ----        ----        ----          ----
<S>                                                             <C>          <C>          <C>          <C>
Revenue                                                         $ 26,988     $ 21,357     $ 72,522     $  70,225
                                                                --------     --------     --------     ---------

Operating costs and expenses:
 Internet services                                                15,998       12,601       41,463        38,643
 Selling, general and administrative                              20,026       27,574       56,397        77,477
 Goodwill impairment charge                                           --           --           --        47,992
 Depreciation and amortization                                    11,797       13,110       31,700        43,870
                                                                --------     --------     --------     ---------

Total operating costs and expenses                                47,821       53,285      129,560       207,982

Loss from operations                                             (20,833)     (31,928)     (57,038)     (137,757)

Interest income, net                                               3,372        1,511        9,420         5,876
Other expense, net                                                  (457)        (644)      (1,430)         (751)
Foreign currency gains/(losses)                                   (6,710)       4,684       (9,561)       (3,358)
                                                                --------     --------     --------      --------

Loss before income taxes and minority interest                   (24,628)     (26,377)     (58,609)     (135,990)
Income tax benefit/(expense)                                        (340)         178         (840)           46
Minority interest in loss of consolidated subsidiaries               879           --        2,295           245
                                                                --------     --------     --------     ---------

Net loss attributable to common stockholders                    $(24,089)    $(26,199)    $(57,154)    $(135,699)
                                                                ========     ========     ========     =========

Basic and diluted loss per share attributable to common
 stockholders                                                     $(0.40)      $(0.43)      $(1.14)       $(2.23)
                                                                ========     ========     ========     =========


Shares used in computing basic and diluted loss per share     59,956,310   60,635,252   50,253,148    60,798,233
</TABLE>


The accompanying notes are an integral part of these consolidated financial
statements.


                                      -4-
<PAGE>

                               VIA NET.WORKS, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
         (in thousands of U.S. dollars, except share and per share data)
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                           For the nine months ended
                                                                                 September 30,
                                                                                 -------------
                                                                                2000       2001
                                                                                ----       ----
<S>                                                                           <C>        <C>
Cash flows from operating activities:
 Net loss                                                                     $(57,154)  $(135,699)
 Adjustments to reconcile net loss to net cash used in operating
  activities:
      Depreciation and amortization                                             31,700      43,870
      Goodwill impairment charge                                                     -      47,992
      Employee stock compensation                                                4,297       2,229
      Provision for doubtful accounts receivable                                 1,275       5,347
      Unrealized foreign currency transaction losses                             2,064       1,148
      Deferred income taxes                                                          -         (11)
      Minority interest in loss of consolidated subsidiaries                    (2,295)       (245)
  Changes in assets and liabilities, net of acquisitions:
      Trade accounts receivable                                                 (5,895)     (6,898)
      Other current assets                                                        (777)        161
      Other noncurrent assets                                                      354        (193)
      Accounts payable                                                           3,202      (8,102)
      VAT and other taxes payable                                                 (405)     (1,010)
      Other current liabilities and accrued expenses                             4,692       5,358
      Deferred revenue                                                           2,988      (1,367)
                                                                              --------   ---------

       Net cash used in operating activities                                   (15,954)    (47,420)
                                                                              --------   ---------

Cash flows from investing activities:
 Acquisitions, net of cash acquired                                            (68,429)     (8,637)
 Proceeds from the disposition of operating subsidiary                               -         320
 Purchases of property and equipment                                           (14,611)    (16,204)
 Purchases/dispositions of other assets                                          2,298        (197)
                                                                              --------   ---------

       Net cash used in investing activities                                   (80,742)    (24,718)
                                                                              --------   ---------

Cash flows from financing activities:
 Repayment of debt                                                              (3,030)     (1,959)
 Proceeds from issuance of common stock, net                                   332,009          47
 Purchase of treasury stock                                                          -        (435)
 Proceeds from borrowings                                                            -         240
                                                                              --------   ---------

       Net cash provided by (used in) financing activities                     328,979      (2,107)
                                                                              --------   ---------

Effect of currency exchange rate changes on cash                                  (113)        (71)
                                                                              --------   ---------

Net increase (decrease) in cash and cash equivalents                           232,170     (74,316)
Cash and cash equivalents, beginning of period                                  20,067     237,839
                                                                              --------   ---------

Cash and cash equivalents, end of period                                      $252,237   $ 163,523
                                                                              ========   =========

Noncash investing and financing transactions:

     Common stock issued to satisfy debt                                      $  5,183   $       -
                                                                              ========   =========

     Common stock issued in connection with acquisitions                      $  4,657   $       -
                                                                              ========   =========

     Treasury shares obtained in exchange for stock option exercises          $      -   $     236
                                                                              ========   =========
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.

                                      -5-

<PAGE>

                               VIA NET.WORKS, INC
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

1.  Basis of Presentation and Restatement

    These consolidated financial statements for the three and nine month periods
    ended September 30, 2000 and 2001 and the related footnote information are
    unaudited and have been prepared on a basis substantially consistent with
    the audited consolidated financial statements of VIA NET.WORKS, Inc. ("VIA"
    or "the Company") as of and for the year ended December 31, 2000, included
    in VIA's Annual Report on Form 10-K as filed with the Securities and
    Exchange Commission (Annual Report). These financial statements should be
    read in conjunction with the audited consolidated financial statements and
    the related notes thereto included in the Annual Report. In the opinion of
    management, the accompanying unaudited financial statements contain all
    adjustments (consisting of normal recurring adjustments) which management
    considers necessary to present fairly the consolidated financial position of
    VIA at September 30, 2001 and the results of operations for the three and
    nine month periods ended September 30, 2000 and 2001 and the cash flows for
    the nine month periods ended September 30, 2000 and 2001. The results of
    operations for the three and nine month periods ended September 30, 2001 may
    not be indicative of the results expected for any succeeding quarter or for
    the year ending December 31, 2001.

    Simultaneously with the filing of this Form 10-Q, the Company is revising
    its previously reported results for the three month period ending June 30,
    2001 by filing Form 10-Q/A for that period. The principal effects of the
    revision are noted in Note 1 to the consolidated financial statements in the
    Form 10-Q/A.  In this Form 10-Q, references or comparisons to results in the
    second quarter 2001 are to the restated results.

Recent Pronouncements

    In July 2001, the Financial Accounting Standards Board ("FASB") issued
    Statement of Financial Accounting Standards No. 141, "Business
    Combinations" ("SFAS 141") and Statement of Financial Accounting Standards
    No. 142, "Goodwill and Other Intangible Assets" ("SFAS 142"). SFAS 141
    requires all business combinations to be accounted for using the purchase
    method of accounting and is effective for all business combinations
    initiated after June 30, 2001. SFAS 142 requires goodwill to be tested for
    impairment under certain circumstances, and written off when impaired,
    rather than being amortized as previous standards required. SFAS 142 is
    effective for fiscal years beginning after December 15, 2001. Upon
    implementation of SFAS 142, the Company will reclassify the acquired
    employee workforce as goodwill and will discontinue the amortization of
    goodwill as of January 1, 2002. Amortization of goodwill and acquired
    employee workforce for the third quarter of 2001 was $8.8 million. SFAS 142
    requires the Company to test all goodwill for impairment as of January 1,
    2001. The Company has not completed its assessment of the impact of SFAS 142
    adoption and has not determined whether such impairment test will result in
    a material write down of goodwill in fiscal year 2002.

    In August 2001, FASB issued SFAS No. 144, "Accounting for the Impairment or
    Disposal of Long-Lived Assets."  This Statement addresses financial
    accounting and reporting for the impairment or disposal of long-lived assets
    and supersedes FASB Statement No. 121, "Accounting for the Impairment of
    Long-Lived Assets and for Long-Lived Assets to Be Disposed Of," and the
    accounting and reporting provisions of APB Opinion No. 30, "Reporting the
    Results of Operations -- Reporting the Effects of Disposal of a Segment of a
    Business, and Extraordinary, Unusual and Infrequently Occurring Events and
    Transactions," for the disposal of a segment of a business. The provisions
    of this Statement will be effective for financial statements issued for the
    Company's fiscal year 2002. The adoption of this Statement is not expected
    to have a significant impact on the Company's financial position or results
    of operations.

2.  Comprehensive Loss

    Comprehensive loss for the three and nine months ended September 30, 2000
    and 2001 was as follows (in thousands of U.S. dollars):

<TABLE>
<CAPTION>
                                        Three months ended September 30,    Nine months ended September 30,
                                                2000        2001                 2000        2001
                                                ----        ----                 ----        ----
<S>                                           <C>        <C>                    <C>        <C>
   Net loss                                   $(24,089)  $(26,199)              $(57,154)  $(135,699)
   Foreign currency translation adjustment      (3,690)     2,837                (10,095)       (627)
                                              --------   --------               --------   ---------

   Comprehensive loss                         $(27,779)  $(23,362)              $(67,249)  $(136,326)
                                              ========   ========               ========   =========
</TABLE>


                                      -6-
<PAGE>

3.  Acquisitions of Certain Businesses

    Beginning in June 1998 and continuing through October 2000, the Company made
    a series of acquisitions of Internet services providers located in Europe,
    Latin America and the U.S., each of which offered various Internet services
    including Internet access, web hosting, e-commerce, Internet security and
    other services, primarily to small and mid-sized businesses.

    Each of the acquisitions has been accounted for using the purchase method of
    accounting and, accordingly, the net assets and results of operations of the
    acquired companies have been included in the Company's consolidated
    financial statements since the acquisition dates. The purchase price of the
    acquisitions was allocated to assets acquired, including intangible assets,
    and liabilities assumed, based on their respective fair values at the
    acquisition dates. Identifiable intangible assets as of the date of
    acquisition primarily consist of a customer base, employee workforce and the
    trade name. Because the Company's operating strategy following an
    acquisition generally results in changing the existing target market from
    residential subscribers to small and mid-sized businesses and a focus on the
    VIA NET.WORKS brand name, the value allocated to the acquired customer bases
    and trade names has not been significant. Likewise, due to the short
    operating history of most of these acquired businesses, there is uncertainty
    as to employee retention. As a result, a significant portion of the purchase
    price has been allocated to goodwill.


Acquisitions

    Since 1998, the Company completed 26 acquisitions for cash, notes and common
stock:

<TABLE>
<CAPTION>
                                    Number of Businesses  Aggregate Purchase     Assets     Liabilities
                                    --------------------  ------------------    --------    -----------
                                          Acquired              Price           Acquired      Assumed
                                    --------------------  ------------------    --------    -----------
                                                      (In thousands of U.S. dollars)
<S>                                           <C>              <C>              <C>          <C>
 1998.............................            4                $ 39,217         $ 6,456      $ 7,148
 1999.............................           13                $ 92,327         $15,867      $18,321
 2000.............................            9                $ 75,715         $ 8,454      $ 6,356
                                             --                --------         -------      -------

Total.............................           26                $207,259         $30,777      $31,825
</TABLE>

   In connection with the acquistion of Net4You, we paid approximately $195,000
   to the minority shareholders of that company in the first quarter of 2001.

   In connection with the purchase of ISAR, we paid an additional contingent
   earn-out cash payment in the amount of $3.3 million in March 2001. The
   payment amount was determined based on revenue and EBITDA of ISAR for the
   year ended December 31, 2000. Additionally, in March 2001, as required under
   the purchase agreement related to the acquisition of VIA NET.WORKS (Schweiz)
   AG (formerly Smartcomp), we made a contingent earn-out cash payment of $3.2
   million, based on year 2000 consolidated revenue and EBITDA of VIA NET.WORKS
   (Schweiz) AG and its wholly-owned subsidiary, SmartWeb GmbH.

   We have agreements with the minority stockholders of our majority-owned
   operating companies that give us the right, after a specified period of time,
   to purchase their shares in those operating companies based on predetermined
   price formulas which consider revenue growth, operating results and cash
   flows. In some cases, the minority stockholders, have the right to purchase
   our shares in those operating companies if we do not exercise our purchase
   right by a specified date. In March 2001, we exercised our right to purchase
   the remaining shares of M&CNet, one of our operations in Switzerland, for
   $1.1 million.

   In January 2001, VIA NET.WORKS Deutschland completed the sale of its 100%
   interest in Ecce Terram to that company's former owner. The transaction
   resulted in no net gain or loss in the consolidated statements of VIA.

   During the third quarter, we paid approximately $900,000 to retire debt and
   approximately $402,000 for a back end earn-out payment recognized as
   compensation expense, both in connection with the original acquisition of
   DNS.

4.    Property and Equipment

    Property and equipment consisted of the following (in thousands of U.S.
dollars):

<TABLE>
<CAPTION>
                                                    December 31,   September 30,
                                                       2000            2001
                                                     --------        --------
<S>                                                  <C>             <C>
    Hardware and other equipment                     $ 23,615        $ 27,340
    Network and data center assets                     25,075          27,168
    Software                                            7,595          15,133
    Furniture and fixtures                              2,999           3,572
                                                     --------        --------

                                                       59,284          73,213
    Accumulated depreciation and amortization         (20,057)        (29,340)
                                                     --------        --------

    Property and equipment, net                      $ 39,227        $ 43,873
                                                     ========        ========
</TABLE>

   Depreciation expense was $2.6 million and $3.8 million for the three months
   ended September 30, 2000 and 2001, respectively. Total depreciation expense
   was $7.0 million and $10.4 million for the nine months ended September 30,
   2000 and 2001, respectively. Certain network assets as of December
   31, 2000 have been reclassified as hardware to reflect the current year
   presentation.


                                      -7-
<PAGE>

5.  Goodwill and Other Acquired Intangible Assets

    Goodwill and other intangible assets acquired through business acquisitions
    consisted of the following (in thousands of U.S. dollars):

<TABLE>
<CAPTION>
                                 December 31,   September 30,
                                    2000            2001
                                    ----            ----
<S>                               <C>             <C>
Goodwill                          $220,378        $226,572
Customer base                        8,360           8,680
Employee workforce                   3,760           3,760
Goodwill impairment charge               -         (47,992)
Accumulated amortization           (51,416)        (84,589)
                                  --------        --------

Total                             $181,082        $106,431
                                  ========        ========
</TABLE>

    Total amortization expense was $9.2 million and $9.3 million for the three
    months ended September 30, 2000 and 2001, respectively. Total amortization
    expense was $24.7 million and $33.5 million for the nine months ended
    September 30, 2000 and 2001, respectively. The value assigned to
    goodwill, customer base and employee workforce is being amortized over its
    estimated useful life of five years.

    During the three months ended June 30, 2001, the Company determined that the
    undiscounted cash flows associated with certain of its long-lived assets
    would not be sufficient to recover the net book value of such assets. In
    accordance with SFAS 121, "Accounting for the Impairment of Long-Lived
    Assets and for Long-Lived Assets to Be Disposed Of" ("SFAS 121"), the
    Company has recorded an impairment charge of approximately $48.0 million
    related to operations in Mexico, United States, Spain and Brazil. The
    respective amounts for this charge were $31.1 million, $16.1 million,
    $524,000 and $324,000. This impairment charge was taken to reflect the long-
    lived assets in these countries at their estimated fair value. The estimates
    of the fair values of the long-lived assets are based on a valuation of such
    assets performed by management. The fair values, as required by SFAS 121,
    did not consider the value of such assets in a forced sale or liquidation;
    they were based primarily on an analysis of the operations' revenue streams,
    based on multiples derived from comparable market transactions.

6.  Long-term Debt

    Long-term debt consisted of the following (in thousands of U.S. dollars):

<TABLE>
<CAPTION>
                                                                                       December 31,   September 30,
                                                                                           2000            2001
                                                                                           ----            ----
<S>                                                                                     <C>             <C>
     Acquisition debt                                                                   $ 1,495         $     -
     Debt related to IRU Agreements, 12%, due quarterly to 2002                           2,476           2,093
     Capital lease obligations at interest rates ranging from 7.8% to 8.0%, due
      monthly through 2004                                                                  866             457
     Notes payable, due monthly through 2002                                                322             315
                                                                                        -------         -------

                                                                                          5,159           2,865
     Less current portion                                                                (3,265)         (2,537)
                                                                                        -------         -------

    Long-term portion                                                                   $ 1,894         $   328
                                                                                        =======         =======

</TABLE>

Acquisition debt represents amounts due to current or former managers of
acquired businesses.

                                      -8-

<PAGE>

7.  Treasury Stock

    In June 2001, the Company announced a stock repurchase plan that will allow
    the Company to spend up to $10 million to repurchase shares of its common
    stock. Under the plan, the Company may repurchase shares of its common stock
    from time to time, subject to market conditions, applicable legal
    requirements and other factors. This plan does not require that the Company
    purchase any specific number of shares and the plan may be suspended at any
    time. The Company's repurchase of shares of common stock are recorded as
    "Treasury Stock" and result in a reduction of "Stockholders' Equity." During
    the third quarter of 2001, the Company repurchased 478,311 shares of its
    common stock in connection with the aforementioned plan.

8.  Contingencies

    From time to time, the Company is subject to claims arising in the ordinary
    course of business. In the opinion of management, no such matter,
    individually or in the aggregate, exists which is expected to have a
    material effect on the results of operations, cash flows or financial
    position of VIA.

    On November 5, 2001, the law firm of Wolf Haldenstein Adler Freeman & Herz
    LLP issued a press release stating that it had initiated a class action
    lawsuit in the District Court for the Southern District of New York against
    VIA NET WORKS, Inc., certain of the underwriters who supported our initial
    public offering ("IPO") and certain of our officers, under the title O'Leary
    v. Via Net works et al [01-CV-9720] (the "Complaint"). While we have not yet
    received service of the Complaint, we understand it alleges that the
    prospectus the Company filed with its registration statement in connection
    with our IPO was materially false and misleading because it failed to
    disclose, among other things, that: (i) the named underwriters had solicited
    and received excessive and undisclosed commissions from certain investors in
    exchange for the right to purchase large blocks of VIA IPO shares; and (ii)
    the named Underwriters had entered into agreements with certain of their
    customers to allocate VIA IPO shares in exchange for which the customers
    agreed to purchase additional VIA shares in the aftermarket at pre-
    determined prices ("Tie-in Arrangements"), thereby artificially inflating
    the Company's stock price. The Complaint further alleges violations of
    Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 and Section 10(b)
    of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder
    arising out of the alleged failure to disclose and the alleged materially
    misleading disclosures made with respect to the commissions and the Tie-in
    Arrangements in the prospectus. This Complaint is one of over 150 similar
    suits filed to date against underwriters, issuers and their officers
    alleging similar activities, known as "laddering". We believe that any
    allegations in the Complaint of wrongdoing on the part of VIA or our
    officers are without legal merit and we intend to vigorously defend against
    them.

9.  Segment Reporting

    The Company offers a variety of Internet access, web hosting, ecommerce,
    Internet security and related services to businesses and consumers in
    Europe, Latin America and the United States. As of September 30, 2001 the
    Company served primary markets in 15 countries, with operations organized
    into four geographic operating segments--North America; South America; the
    United Kingdom (UK), Ireland and Southern Europe; and Central and Western
    Europe. These segments generate Internet-related revenues from leased lines,
    dial-up Internet access, web hosting and design, consulting services, and
    sale of third-party hardware and software.  Corporate expenses that are not
    allocated to one of the operating segments are shown to reconcile total
    consolidated figures.

    Beginning in the quarter ended December 31, 2000, VIA reorganized its
    management reporting structure to create four reportable segments rather
    than two. Prior amounts presented for the quarter ended September 30, 2000
    have been revised to conform to the current presentation.

    Each of these geographic operating segments is considered a reportable
    segment. The Company evaluates the performance of its segments based on
    revenue and earnings before interest, taxes, depreciation and amortization
    and non-cash compensation charges ("EBITDA"). The table below presents
    information about the reported revenue, EBITDA and assets of the Company's
    segments for the three and nine months ended September 30, 2000 and 2001,
    net of intercompany revenue of $1.2 million, $3.3 million, $751,000 and $4.3
    million, respectively, which was eliminated upon consolidation.
    Additionally, the assets presented in this table include intercompany
    receivables and payables. This table is presented in thousands of U.S.
    dollars.

<TABLE>
<CAPTION>
                                                                                   UK, Ireland
                                                                                   -----------
                                                                                   and           Central and
                                                                                   -----------   -----------
                                                               North     South     Southern      Western
                                                               -------   -------   -----------   -----------
                                                   Corporate   America   America   Europe        Europe        Total
                                                   ---------   -------   -------   -----------   -----------   -----
<S>                                                <C>          <C>       <C>       <C>           <C>         <C>
  Three months ended September 30, 2000:
   Revenue.......................................  $      --     4,120     1,781     12,900         8,187      26,988
   EBITDA........................................  $  (3,892)   (1,363)   (1,583)       (65)         (775)     (7,678)
   Assets........................................  $ 284,887    84,155     9,276     61,004        49,060     488,382
  Three months ended September 30, 2001:
   Revenue.......................................  $      --     4,330     1,335      8,041         7,651      21,357
   EBITDA........................................  $  (2,138)   (3,168)     (917)    (6,727)       (5,120)    (18,070)
   Assets........................................  $ 257,144    13,672      (287)    25,219        41,603     337,351
  Nine months ended September 30, 2000:
   Revenue.......................................  $      --     9,740     4,721     34,840        23,221      72,522
   EBITDA........................................  $ (11,632)   (3,309)   (4,014)       859        (2,946)    (21,042)
   Assets........................................  $ 284,887    84,155     9,276     61,004        49,060     488,382
  Nine months ended September 30, 2001:
   Revenue.......................................  $      --    13,350     4,654     25,178        27,043      70,225
   EBITDA........................................  $  (8,212)   (5,784)   (4,248)   (12,451)      (12,971)    (43,666)
   Assets........................................  $ 257,144    13,672      (287)    25,219        41,603     337,351
</TABLE>

A reconciliation from total EBITDA to loss before income taxes and minority
interest is as follows (in thousands of U.S. dollars):

                                      -9-
<PAGE>

<TABLE>
<CAPTION>
                                                            For the           For the           For the           For the
                                                          three months      three months      nine months       nine months
                                                        ended September   ended September   ended September   ended September
                                                           30, 2000          30, 2001          30, 2000          30, 2001
                                                           ---------         ---------         ---------         ---------
<S>                                                        <C>               <C>               <C>               <C>
   EBITDA                                                  $  (7,678)        $ (18,070)        $ (21,042)        $ (43,666)
   Non-cash compensation                                      (1,358)             (748)           (4,296)           (2,229)
   Goodwill impairment charge                                     --                --                --           (47,992)
   Depreciation and amortization                             (11,797)          (13,110)          (31,700)          (43,870)
                                                           ---------         ---------         ---------         ---------

   Loss from operations                                      (20,833)          (31,928)          (57,038)         (137,757)
   Other income and expense                                   (3,795)            5,551            (1,571)            1,767
                                                           ---------         ---------         ---------         ---------

   Loss before income taxes and minority interest          $ (24,628)        $ (26,377)        $ (58,609)        $(135,990)
                                                           =========         =========         =========         =========
</TABLE>

   The three largest revenue producing countries for the three and nine months
   ended September 30, 2000, the United Kingdom, Germany and Mexico, generated
   revenues in the amounts of $11.8 million, $3.4 million and $3.8 million, and
   $31.5 million, $10.2 million and $9.4 million, respectively.

   The three largest revenue producing countries for the three and nine months
   ended September 30, 2001, the United Kingdom, Mexico and Germany, generated
   revenues in the amounts of $6.3 million, $3.4 million and $2.6 million, and
   $20.7 million, $10.5 million and $9.7 million, respectively. Revenue from our
   U.S. operating company, for the three and nine months ended September 30,
   2001 was $901,000 and $2.9 million, respectively.

10.  Restatement of Financial Statements

   Simultaneously with the filing of this Form 10-Q, the Company is revising its
   results for the three month period ending June 30, 2001 by filing Form 10-Q/A
   for that period. The principal reasons for the revision are noted in Note
   1 to the consolidated financial statements in the Form 10-Q/A. In this Form
   10-Q, references or comparisons to results in the second quarter 2001 are to
   the restated results.

The principal effects of the restatement are noted in the table as follows:

<TABLE>
<CAPTION>
                                   Three months ended June 30, 2001             Six months ended June 30, 2001
                                   As Reported          As Restated             As Reported        As Restated
                                   -----------          -----------             -----------        -----------
<S>                                <C>                  <C>                     <C>                <C>
Statement of Operations Data:
 Revenue
   Access                             11,958               11,528                   24,957             24,526
   Value added                        11,738               10,625                   23,627             22,515
   Other                               1,279                1,279                    1,827              1,827
 Total Revenue                        24,975               23,432                   50,411             48,868
 Direct Costs                         12,568               12,551                   26,059             26,042
 Loss from Operations                (77,068)             (78,594)                (104,301)          (105,827)
 Net Income (Loss)                   (77,484)             (79,010)                (107,974)          (109,500)
 Net Income (Loss) per share          $(1.27)              $(1.30)                  $(1.78)            $(1.80)
</TABLE>

<TABLE>
<CAPTION>
                                                      June 30, 2001
                                                 As Reported   As Restated
                                                 -----------   -----------
<S>                                              <C>           <C>

Balance Sheet Data:
Accounts receivable .........................       21,616        19,489
Other current assets ........................        6,981         6,183
VAT and other taxes .........................        2,598         2,275
Deferred revenue.............................       14,144        13,078
Cumulative translation adjustment ...........      (16,627)      (16,637)
Accumulated deficit .........................     (221,667)     (223,193)
</TABLE>

                                      -10-
<PAGE>

   Item. 2. Management's Discussion and Analysis of Financial Condition and
   Results of Operation

   The following discussion and analysis should be read in conjunction with the
   consolidated financial statements and related notes included in Item 1 of
   this Form 10-Q. This discussion contains forward-looking statements based on
   current expectations, which involve risks and uncertainties. Forward-looking
   statements relate to future events or our future financial performance. In
   some cases, you can identify forward-looking statements by terminology such
   as "may," "will," "should," "expects," "plans," "anticipates," "could,"
   "believes," "estimates," "predicts," "potential" or "continue" or the
   negative of these terms or similar words. Forward-looking statements on this
   Form 10-Q include, but by way of example only, statements regarding our
   expectations about the future reach and configuration of our network, and the
   future amounts and relative percentages as compared to total revenues of our
   value-added revenues and our operating and service-related costs. Actual
   events or results may differ materially. Information regarding the risks,
   uncertainties and other factors that could cause actual results to differ
   from the results in these forward-looking statements are discussed in the
   "Risk Factors" included on this Form 10-Q as Exhibit 99.1, as well as those
   described in the "Risk Factors" section of VIA's Annual Report on Form 10-K
   as filed with the Securities and Exchange Commission (Annual Report). You are
   urged to carefully consider these factors, as well as other information
   contained in this Form 10-Q and in our other periodic reports and documents
   filed with the Securities and Exchange Commission.

   Overview

   VIA NET.WORKS is a leading international provider of Internet access and
   value-added services focused on small and mid-sized businesses in Europe,
   Latin America and the United States. We have built our business through the
   acquisition, integration and growth of 26 Internet services providers in 15
   countries, all of which have been acquired since June 1998. We currently
   operate in Argentina, Austria, Belgium, Brazil, France, Germany, Ireland,
   Italy, Mexico, the Netherlands, Portugal, Spain, Switzerland, the United
   Kingdom and the United States. By targeting businesses in Europe and Latin
   America, we have positioned VIA to capitalize on some of the most rapidly
   growing areas of the Internet market. Our European and Latin American markets
   have a relatively low number of total Internet users, and businesses in each
   region have a relatively low number of Internet services available to them.
   By choosing to serve these market segments, we have the opportunity to sell
   our services to a large number of businesses that have identifiable Internet
   needs but little or no Internet experience. Once we have developed
   relationships with these customers, we seek to upgrade them from entry-level
   Internet access services to more sophisticated and higher margin solutions
   such as managed application hosting and virtual private networking. In our
   U.S. market, we currently focus exclusively on web-related services such as
   shared and dedicated web hosting, and domain name registration. Our U.S.
   operation allows us to meet the U.S. web hosting needs of our large
   international customer base.

   Our goal is to become the premier provider of international Internet
   solutions for businesses in Europe and Latin America. We intend to reach our
   goal by

    .    delivering world-class service and technical support,

    .    meeting business customers' needs with our reliable international
         network,

    .    providing Internet solutions that provide businesses more productive,
         cost effective ways to communicate information and transact business,

    .    building the VIA NET.WORKS brand name,

    .    delivering quality customer service through continued investment in
         billing, back-office and customer care systems, and

    .    continuing investment in network infrastructure and product
         development.

   Our pan-European and trans-Atlantic network provides our European operations
   with high capacity and resilient transport, as well as redundant Internet
   Protocol peering and transit arrangements. Our network is connected to the
   Internet by multiple peering arrangements at major commercial Internet
   exchanges and through transit agreements from multiple major carriers. Using
   these diverse connections, our network dynamically routes traffic over the
   network of the provider best able to deliver the data in the most efficient
   manner. Direct connections to multiple major carriers and Internet exchanges
   assure reliable service levels, protecting against traffic congestion and
   network outages. We have designed a redundant network to avoid any single
   point of failure. Our U.S. and Latin American operations are currently
   connected to the Internet by multiple leased, high-speed links.


                                      -11-
<PAGE>

   We currently offer a comprehensive portfolio of single source Internet
   solutions for business on both an integrated and stand-alone basis. Our
   solutions are packaged to address the needs of businesses that have immediate
   needs for a web presence or for specific Internet capabilities. Our solutions
   are also packaged to address more sophisticated Internet requirements. For
   businesses new to the Internet, our "Starter Solutions" provide a simple way
   to establish an online presence quickly and easily. These solutions consist
   of pre-packaged Internet tools that can be purchased individually or in a
   bundled solution, including Internet access, email, web-site hosting and
   domain registration. For customers ready to take advantage of more
   sophisticated Internet capabilities, our "Tailored Solutions" combine the
   basic starter Internet services with advanced Internet solutions. These
   customized solutions provide a comprehensive array of Internet services that
   we integrate, manage and update for our customers on an ongoing basis. Our
   tailored solutions include advanced connectivity services which can address
   multiple-site, multiple-use and mobile user business applications, advanced
   hosting services which combine basic web hosting with more sophisticated
   applications such as intranets, extranets, exchanges, and business
   productivity capabilities and security services which provide extensive
   network security solutions to businesses of all sizes. Many of our customers
   do not have the internal resources or personnel to design or maintain
   Internet functions. As businesses rely more on the Internet for important
   business applications, they are increasing their outsourcing of information
   technology applications. To meet this need, we offer onsite, professional
   services to customers. Our local operations offer a broad range of
   professional services to their customers, including network and system
   design, web design, web-site development and maintenance, VPN and Internet
   security design and implementation, and other Internet-related services.

   The following table summarizes our operations in Europe, Latin America and
   the United States by geographic operating segment, country, operating company
   and revenue contribution. VIA operates in 15 countries organized into four
   geographic operating regions:

    .    Central and Western Europe
    .    United Kingdom, Ireland and Southern Europe
    .    South America
    .    North America

<TABLE>
<CAPTION>
                                                                           Percentages of Total Revenue Percentages of Total Revenue
                                                                           ---------------------------- ----------------------------
                                                                            for the Three Months Ended   for the Nine Months Ended
                                                                            --------------------------   -------------------------
Country of Operation          Operating Company                                 September 30, 2001           September 30, 2001
--------------------          -----------------                                 ------------------           ------------------
<S>                           <C>                                          <C>                          <C>
Central and Western Europe:

  Austria                     Net4You......................................             1%                          1%
  France                      VIA NET.WORKS France.........................             3%                          2%
                              DNS..........................................             8%                          8%
                              Symphonie S.A. (MNET)........................             1%                          1%
  Germany                     VIA NET.WORKS Deutschland (GTN, INS, ISAR &
                                Highspeed).................................            12%                         14%
  The Netherlands             VIA NET.WORKS Nederland (formerly bART & IAE)             6%                          7%
  Switzerland                 VIA NET.WORKS (Schweiz) (formerly Smartcomp
                                and M&CNET)................................             5%                          4%
United Kingdom, Ireland and Southern Europe:

  United Kingdom              VIA NET.WORKS UK.............................            30%                         30%
  Ireland                     VIA NET.WORKS Ireland........................             2%                          1%
  Italy                       VIA NET.WORKS Italia.........................             1%                          1%
  Portugal                    VIA NET.WORKS Portugal.......................             3%                          3%
  Spain                       VIA NET.WORKS Espana.........................             2%                          2%
South America:

  Argentina                   VIA NET.WORKS Argentina......................             3%                          3%
                              ServiceNet...................................   less than 1%                less than 1%
  Brazil                      VIA NET.WORKS Brasil.........................             3%                          4%
North America:

  Mexico                      VIA NET.WORKS Mexico.........................            16%                         15%
  United States               VIA NET.WORKS USA............................             4%                          4%
</TABLE>


                                      -12-
<PAGE>

   RESULTS OF OPERATIONS

   Three and nine months ended September 30, 2001 compared with the three and
   nine months ended September 30, 2000

Revenue

<TABLE>
<CAPTION>
                                        Three months ended                               Nine months ended
                                   September 30,   September 30,   % Increase/      September 30,   September 30,   % Increase/
                                       2000            2001        (Decrease)           2000            2001          (Decrease)
                                       ----            ----        -----------          ----            ----          ---------
                                  (in thousands of U.S. dollars)                   (in thousands of dollars)
<S>                                   <C>             <C>              <C>           <C>             <C>              <C>
 Residential Access                    2,022           1,561           (23%)            6,017           4,939           (18%)
 % of Total Revenue                        8%              7%                               8%              7%
 Business Access                      14,587           9,498           (35%)           38,503          30,646           (20%)
 % of Total Revenue                       54%             45%                              53%             44%
 Value Added Services                 10,379          10,298            (1%)           28,002          34,640            24%
 % of Total Revenue                       38%             48%                              39%             49%
 Total Revenue                        26,988          21,357                           72,522          70,225
</TABLE>

  We generate revenue from the sale of Internet access services and Internet
  value-added services. Revenue from Internet access services, both dial-up and
  dedicated, is derived primarily from subscriptions purchased by businesses and
  consumers. Additionally, in some countries we receive revenue in the form of
  payments from the telecommunications companies that our customers use to
  access our services. All of our access revenues are recognized as they are
  earned over the period the services are provided. Revenue from Internet value-
  added services comes from web hosting, applications hosting and related
  maintenance, domain name registration, Internet security services, sales of
  hardware and third-party software, network installation, training and
  consulting and other services. Services such as web and applications hosting
  and domain name registration are generally sold on a subscription basis and
  are paid for in advance or by monthly direct charges to credit or debit
  accounts. These revenues are recognized over the period in which the services
  are provided. Revenue from hardware and third-party software sales,
  installation, training and consulting, and other services is on a contract
  basis. Revenue from installation, training and consulting is recognized over
  the contract term as the related services are provided. Revenue from hardware
  and third-party software sales is recognized upon delivery or installation of
  the products, depending on the terms of the arrangement, and when the fee is
  fixed or determinable and collectibility is considered probable.

  Revenue for the three months ended September 30, 2001 decreased 21% to $21.4
  million as compared to $27.0 million for the three months ended September 30,
  2000. Revenue for the nine months ended September 30, 2001 decreased 3%
  to $70.2 million as compared to $72.5 million for the nine months ended
  September 30, 2000. Residential access revenue declined by 23% in the third
  quarter 2001, as compared to the same period in 2000, reflecting the
  continuing run-off of low margin residential customers. Business access
  revenue decreased 35% for the three months ended September 30, 2001 as
  compared to the three months ended September 30, 2000. This decrease resulted
  primarily from the business access revenue we earned from one large wholesale
  contract that peaked in the third quarter 2000 and was largely discontinued by
  the first quarter 2001. Declining revenue from this and other low margin
  wholesale and residential customers (which VIA obtained largely as part of its
  original acquisitions) fits with VIA's strategy of focusing on higher margin
  revenue streams. We do not generally market to wholesale and residential
  customers in any of our operations and hence we expect these revenues to
  continue to run off. Value-added services, which include web-hosting, web-
  design, domain name registration, data networking, managed bandwidth and
  bundled service offerings decreased by 1% for the third quarter of 2001, as
  compared to the same period in 2000. The decrease of value-added services was
  partly attributable to economic conditions, which deteriorated sharply in all
  our markets in the third quarter 2001 compared to the same period in 2000.
  Additionally, beginning late in the first quarter 2001, in response to
  deteriorating economic conditions and declining revenue growth rates in all
  our markets, our operations began cost reduction programs, including the
  reduction of direct costs, staff and, and in some cases, the consolidation of
  office space. During the second and third quarters of 2001, the management
  focus necessary to implement these cost reduction programs detracted from
  revenue generation. We cannot predict whether economic conditions will
  improve, but we do expect to continue our cost reduction programs through the
  first half of 2002.


                                      -13-

<PAGE>

   Internet services operating costs

<TABLE>
<CAPTION>
                                         Three months ended                                   Nine months ended
                                   September 30,     September 30,    % Increase/       September 30,    September 30,  % Increase/
                                       2000              2001          (Decrease)           2000             2001       (Decrease)
                                       ----              ----         -----------           ----             ----       -----------
                                  (in thousands of U.S. dollars)                       (in thousands of U.S. dollars)
<S>                                  <C>               <C>               <C>              <C>              <C>             <C>
   Internet services                 15,998            12,601            (21%)            41,463           38,643          (7%)
   operating costs
   % of Total Revenue                    59%               59%                                57%              55%

</TABLE>

   Our Internet services operating costs are the costs we incur to carry
   customer traffic to and over the Internet. We lease lines that connect our
   points of presence, or PoPs, either to our own network or to other network
   providers. We pay other network providers for transit, which allows us to
   transmit our customers' information to or from the Internet over their
   networks. We also pay other recurring telecommunications costs and personnel
   costs, including the cost of the local telephone lines used by customers to
   reach our PoPs and access our services, and costs related to customer support
   and care. We expect that our Internet services operating costs will increase
   by a percentage of any revenue growth. We anticipate that these costs will
   decline as a percentage of revenue, however, as we increase the percentage of
   higher margin value added services in our revenue mix, expand our owned
   network facilities and as competition drives the overall price of network
   capacity downward.

   Our Internet services operating costs were $12.6 million for the three months
   ended September 30, 2001 as compared to $16.0 million for the three months
   ended September 30, 2000. The decrease in Internet services costs correspond
   to the decrease in revenue for the three months ended September 30, 2001.

   Internet services operating costs for the nine months ended September 30,
   2001 decreased by 7% to $38.6 million as compared to $41.5 million for the
   nine months ended September 30, 2000. We incurred these costs primarily to
   lease lines, purchase transit for the local networks and compensate customer
   care personnel. Additionally, we incurred operating costs associated with our
   international network that we established in June 1999.

   Selling, general and administrative expenses

<TABLE>
<CAPTION>
                                      Three months ended                                Nine months ended
                                 September 30,    September 30,   % Increase/     September 30,     September 30,    % Increase/
                                     2000             2001         (Decrease)         2000              2001          (Decrease)
                                     ----             ----        -----------         ----              ----          ----------
                                (in thousands of U.S. dollars)                   (in thousands of U.S. dollars)
<S>                                <C>              <C>               <C>             <C>             <C>               <C>
   Selling, general &
   administrative costs            20,026           27,574            38%             56,397          77,477            37%
   % of Total Revenue                  74%             129%                               78%            110%
</TABLE>

   Our largest selling, general and administrative expenses are compensation
   costs and the costs associated with marketing our products and services.
   Compensation costs include salaries and related benefits, commissions and
   bonuses. In many of our markets, we are required to make significant
   mandatory payments for government-sponsored social welfare programs, and we
   have little control over these costs. Our marketing expenses include the
   costs of direct mail and other mass marketing programs, advertising, customer
   communications, trade show participation, web site management and other
   promotional costs. Other selling, general and administrative expenses include
   the costs of travel, rent, utilities, insurance and professional fees.
   Beginning late in the first quarter 2001, in response to deteriorating
   economic conditions and declining revenue growth rates in all our markets,
   our operations began cost reduction programs, including the reduction of
   direct costs, staff and, in some cases, the consolidation of office space. We
   have incurred certain one-time expenses relating to staff lay-offs and lease
   terminations, among other things. These one-time expenses, have increased our
   general and administrative expenses, however, we expect recurring general and
   administrative expense to decline significantly as we continue our cost
   reduction programs. We expect to see additional one-time expenses at least
   through the first half of 2002 as we continue to identify and implement cost
   reduction opportunities.

   We incurred selling, general and administrative expenses of $27.6 million for
   the three months ended September 30, 2001, a 38% increase over the $20.0
   million we incurred for the three months ended September 30, 2000. $2.6
   million, or 34% of the increase resulted from one-time costs incurred by our
   operating subsidiaries relating to our cost-reduction programs. Of this
   amount, $2.1 million is comprised of severance payments and termination
   benefits provided in connection with the termination of approximately 152
   employees. The remaining $500,000 is comprised of lease cancellations costs,
   professional fees and other related expenses. Additionally, $2.5 million or
   33% of the increase in selling, general and administrative expenses on a
   quarter over quarter comparison related to the 4 operations that were not
   consolidated for all or part of the third quarter of 2000. Selling, general
   and adm5nistrative expenses increased by 37% to $77.5 million for the nine
   months ended September 30, 2001, as compared to the $56.4 million for the
   corresponding period in the preceding year.

                                      -14-
<PAGE>

   Bad debt expense for the nine months ended September 30, 2000 and 2001 was
   $1.3 million and $5.3 million, respectively. The increase in bad debt was
   largely attributable to the deteriorating economic conditions which
   necessitate more conservative policies regarding reserving for bad debt.

   Of the $27.6 million in costs in the third quarter 2001, $2.9 million, or
   11%, of the costs were incurred by our corporate and regional organizations
   and $24.7 million, or 89%, of the expenses were incurred by our 26
   subsidiaries. Beginning in the second quarter of 2001 the Company allocated
   corporate and regional expenses to the local subsidiaries based upon revenue
   and other financial metrics. As a result, corporate and regional expenses
   decreased, down 45% compared to the third quarter of 2000, and costs at the
   operating subsidiaries increased 67% compared to the third quarter of 2000.


Depreciation, amortization and goodwill impairment
<TABLE>
<CAPTION>
                                    Three months ended                                      Nine months ended
                                        September 30,   September 30,   % Increase/    September 30,    September 30,   % Increase/
                                            2000            2001        (Decrease)         2000             2001         (Decrease)
                                            ----            ----        -----------        ----             ----        -----------
                                       (in thousands of U.S. dollars)                (in thousands of U.S. dollars)
<S>                                       <C>             <C>               <C>          <C>              <C>             <C>
   Depreciation and
   amortization                           11,797          13,110            11%          31,700           43,870            38%
   % of Total Revenue                         44%             61%                            44%              62%
   Goodwill Impairment                                                                        -           47,992
   % of Total Revenue                                                                         0%              68%

</TABLE>

   The largest component of our depreciation and amortization expense is the
   amortization of the goodwill arising from our acquisitions. Goodwill, which
   we amortize over five years, is created when the price at which we acquire a
   company exceeds the fair value of its net tangible and intangible assets. We
   also recognize depreciation expense primarily related to telecommunications
   equipment, computers and network infrastructure. We depreciate these assets
   over their useful lives, generally ranging from three to five years. Our
   network infrastructure is depreciated over 20 or 25 years, depending on the
   contract term. The cost of network infrastructure purchased under
   indefeasible right of use agreements (IRU) is being amortized over the lesser
   of the estimated useful life or term of the agreement, generally 20 to 25
   years.

   Our depreciation and amortization expense was $13.1 million for the three
   months ended September 30, 2001, up from $11.8 million for the three months
   ended September 30, 2000. We incurred depreciation and amortization expense
   of $43.9 million for the nine months ended September 30, 2001, up from $31.7
   million for the nine months ended September 30, 2000. For the three months
   ended September 30, 2001, $9.3 million, or 71%, of our depreciation and
   amortization expense was related to the amortization of acquisition goodwill
   and $3.8 million, or 29% was related to the depreciation of fixed assets. For
   the same period in 2000, $9.2 million, or 78%, of our depreciation and
   amortization expense was related to the amortization of acquisition goodwill
   and $2.6 million, or 22% was related to the depreciation of fixed assets. For
   the nine months ended September 30, 2001, $33.5 million, or 76%, of our
   depreciation and amortization expense was related to the amortization of
   acquisition goodwill and $10.4 million, or 24% was related to the
   depreciation of fixed assets. For the nine months ended September 30, 2000,
   $24.7 million, or 78%, of the total depreciation and amortization expense
   related to the amortization of goodwill and $7.0 million, or 22% of the total
   was related to the depreciation of fixed assets.

   As a result of our acquisitions, we amortize substantial amounts of goodwill
   and other intangible assets. Goodwill amortization will cease upon adoption
   of SFAS 142 as of January 1, 2002. Goodwill will be periodically tested for
   impairment in accordance with the provisions of SFAS 142.

   On a periodic basis, management reviews the carrying value of the Company's
   investment in its operations to determine if an event has occurred, with
   respect to any operation, which could result in an impairment of long-term
   assets, primarily goodwill. In its review, management considers market and
   competitive factors, operating and financial trends and the business outlook
   for each operation. As of June 30, 2001, management concluded that an
   impairment of goodwill and other acquired intangible assets had occurred. As
   a result, $48.0 million of goodwill was written off as of June 30, 2001,
   related to our North American; UK, Ireland and South Europe; and South
   American regions. The goodwill impairment for these regions was $47.1
   million, $524,000 and $324,000, respectively. As of September 30, 2001,
   management concluded that no event had occurred in any of its operations that
   would result in a further impairment of long-term assets. Future changes in
   operating results or business outlook could result in a change in
   management's conclusions with respect to the recoverability of its long-term
   assets.

                                      -15-
<PAGE>

Interest income, net

<TABLE>
<CAPTION>
                               Three months ended                                       Nine months ended
                                  September 30,    September 30,    % Increase/    September 30,    September 30,    % Increase/
                                     2000             2001          (Decrease)         2000             2001          (Decrease)
                                     ----             ----          -----------        ----             ----         -----------
                                 (in thousands of U.S. dollars)                  (in thousands of U.S. dollars)
<S>                                 <C>              <C>             <C>             <C>              <C>             <C>
   Interest income, net             3,372            1,511           (55%)           9,420            5,876           (38%)
   % of Total Revenue                  12%               7%                             13%               8%
</TABLE>

   For the three months ended September 30, 2001, we earned $1.6 million in
   interest income, a 53% decrease over the $3.4 million we earned for the three
   months ended September 30, 2000. We earned $6.2 million in interest income
   for the nine months ended September 30, 2001, down from $9.4 million for the
   nine months ended September 30, 2000. Interest income in both periods was
   generated from investing funds received from our initial public offering in
   February 2000, until those funds were used for acquisitions, operating
   expenses or capital expenditures. Net proceeds from the public offering were
   $333.0 million. We also incurred $61,000 of interest expense for the three
   months ended September 30, 2001, as compared to $457,000 of interest expense
   incurred in the same period in 2000. Interest expense for the nine months
   ended September 30, 2001 and 2000 was $288,000 and $1.4 million,
   respectively. Interest expense relates to the debt arising from the notes
   payable to the former owners of businesses acquired and vendor financing at
   both the subsidiary and corporate levels.

   Foreign currency gains/(losses)

<TABLE>
<CAPTION>
                                                Three months ended                              Nine months ended
                                          September 30,    September 30,   % Increase/    September 30,    September 30, % Increase/
                                              2000             2001        (Decrease)         2000             2001       (Decrease)
                                              ----             ----        ----------         ----             ----      -----------
                                          (in thousands of U.S. dollars)                 (in thousands of U.S. dollars)
<S>                                         <C>               <C>             <C>           <C>              <C>             <C>
   Foreign currency gains/(losses)          (6,710)           4,684           170%          (9,561)          (3,358)         65%
   % of Total Revenue                           25%              22%                            13%               5%
</TABLE>

   We recognized a $4.7 million foreign currency gain for the three months ended
   September 30, 2001, as compared to a $6.7 million foreign currency loss for
   the same period in the prior year.  The gain in the third quarter is
   primarily due to the increase in the value of the Euro and its positive
   impact on our Euro denominated cash accounts, which were established to hold
   part of the proceeds of our initial public offering in February 2000.  Our
   foreign currency loss was $3.4 million for the nine months ended September
   30, 2001, as compared to a loss of $9.6 million for the nine months ended
   September 30, 2000. Similarly, the loss in the nine months ended September
   30, 2001, was primarily due to the decrease in the Euro and its negative
   impact on the Euro denominated cash account. The remainder of the loss was
   contributed by fluctuations in the five other non-Euro-linked currencies in
   which we hold monetary assets.

   Liquidity and Capital Resources

   Since inception, we have financed our operations primarily through the sale
   of equity securities. We raised approximately $181.0 million, in the
   aggregate, through three private preferred stock offerings between August
   1997 and April 1999. Through our initial public offering of common stock in
   February 2000, we raised approximately $333.0 million, net of underwriting
   discounts and commissions. At September 30, 2001, we had cash and cash
   equivalents of $163.5 million.

   Cash used in operating activities was $47.4 million for the nine months ended
   September 30, 2001 and $16.0 million for the nine months ended September 30,
   2000. Cash flows from operating activities can vary significantly from period
   to period depending on the timing of operating cash receipts and payments and
   other working capital changes, especially accounts receivable, other current
   assets, accounts payable, accrued expenses and other current liabilities. In
   both periods, our net losses were the primary component of cash used in
   operating activities, offset by significant non-cash depreciation and
   amortization, non-cash stock compensation charges and unrealized foreign
   currency transaction gains and losses.

   Cash used in investing activities was $24.7 million for the nine months ended
   September 30, 2001 and $80.7 million for the same period in 2000. In 2001, we
   used cash to increase our investment in one partially owned operation and to
   make two contingent earn-out payments in connection with four companies
   acquired in 2000. In the first nine months of 2000, cash was primarily used
   for the acquisitions of DNS, Net4You, IAE, IMC Online, ISAR, Microtech and
   SmartComp and for the increase in investments in various partially owned
   subsidiaries. In both periods, we also used cash to fund continuing
   investment in back-office systems and other supporting infrastructure.


                                      -16-
<PAGE>

   Cash used by financing activities was $2.1 million for the nine months ended
   September 30, 2001. In the same period in 2000, cash provided by financing
   activities was $329.0 million. In the third quarter 2001, cash was used
   primarily to repay debt and acquire treasury shares. In the corresponding
   period in 2000, cash was primarily generated by the initial public offering
   of our common stock in February 2000.  We will continue to consider strategic
   acquisitions on an opportunistic basis. Except for the potential need to fund
   a specific larger acquisition, should such an opportunity arise, we do not
   anticipate the need to obtain additional funding before we become self-
   sustaining.  Despite lower than expected revenue growth rates, we believe
   that our cost reduction programs will still allow us to become cash-flow
   positive with significant remaining cash balances.

   The foregoing statements regarding our liquidity and need for additional
   capital resources are forward-looking statements based on current
   expectations, which involve certain risks and uncertainties. Actual results
   and the timing of certain events could differ materially from these forward-
   looking statements depending upon the nature, size and timing of future
   acquisitions, if any, and future amounts of net income before amortization,
   which we cannot predict, as well as other factors discussed in the "Risk
   Factors" included on this Form 10-Q as Exhibit 99.1, as well as those
   described in the "Risk Factors" section of VIA's Annual Report.

   Foreign Currency Exchange Risks

   We conduct business in 15 different currencies, including the Euro and the
   U.S. dollar. With the exception of the Argentine Peso, the value of these
   currencies fluctuates in relation to the U.S. dollar. At the end of each
   reporting period, the revenues and expenses of our operating companies are
   translated into U.S. dollars using the average exchange rate for that period,
   and their assets and liabilities are translated into U.S. dollars using the
   exchange rate in effect at the end of that period. Fluctuations in these
   exchange rates impact our financial condition, revenues and results of
   operations, as reported in U.S. dollars.

   Exchange rates can vary significantly. The Euro-linked currencies varied by
   approximately 12% in relation to the U.S. dollar during the third quarter of
   2001 and at September 30, 2001 were approximately 7% above where they were at
   the beginning of the quarter.  This increase in the exchange rate resulted in
   a foreign currency gain of $4.7 million for the third quarter of 2001.  The
   Euro-linked currencies varied by approximately 15% in relation to the U.S.
   dollar during the nine months ended September 30, 2001 and at that date the
   Euro-linked currencies were approximately 3% below where they were at the
   beginning of the year resulting in a foreign currency loss of $3.4 million
   for the year.  These gains and losses are primarily due to the impact of the
   fluctuation in the value of the Euro on our Euro denominated cash accounts.
   Future changes in the value of the Euro could have a material impact on our
   financial position and results of operations.  We also experienced
   fluctuations in other exchange rates, but they did not have a material impact
   on our results.

   Our local operations transact business in their local currencies. They do not
   have significant assets, liabilities or other accounts denominated in
   currencies other than their local currency, and therefore are not subject to
   exchange rate risk with respect to their normal operations. On a consolidated
   basis, we are subject to exchange rate risks because we translate our local
   operations' financial data into U.S. dollars.

   Conversion to the Euro

   On January 1, 1999, 11 of the 15 European Union member countries adopted the
   Euro as their common legal currency, at which time their respective
   individual currencies became fixed at a rate of exchange to the Euro, and the
   Euro became a currency in its own right. Presently, the following 11
   currencies are subject to the Euro conversion: the Austrian Schilling, the
   Belgian Franc, the Dutch Guilder, the Finnish Markka, the French Franc, the
   German Mark, the Irish Punt, the Italian Lire, the Luxembourg Franc, the
   Portuguese Escudo and the Spanish Peseta.


                                      -17-
<PAGE>

   During a January 1, 1999 through January 1, 2002 transition period, the Euro
   will exist in electronic form only and the participating countries'
   individual currencies will continue in tangible form as legal tender in fixed
   denominations of the Euro. During the transition period, we must manage
   transactions with our customers and our third-party vendors in both the Euro
   and the participating countries' respective individual currencies. We have
   purchased and specified our business support systems, including accounting
   and billing, to accommodate Euro transactions and dual currency operations
   during the transition period. In addition, we generally require all vendors
   supplying third-party software to us to warrant that their software will be
   Euro compliant. Because our acquired European companies generally have short
   operating histories, most of their systems were acquired and implemented
   after the Euro was already contemplated. Consequently, any expenditure
   related to Euro compliance has largely been, and will be, in the normal
   course of business.

   We conduct business transactions with customers, network suppliers, banks and
   other businesses, and we will be exposed to Euro conversion problems in these
   third-party systems. During the transition period, to the extent we are
   supplying local service, we can continue billings and collections in the
   individual currencies to avoid Euro conversion problems. However, to the
   extent we have cross-border transactions in European Union countries, we will
   be exposed to Euro-related risks. The establishment of the European Monetary
   Union may have a significant effect on the economies of the participant
   countries. While we believe that the introduction of the Euro will eliminate
   exchange rate risks in respect of the currencies of those member states that
   have adopted the Euro, there can be no assurance as to the relative strength
   of the Euro against other currencies. Because a substantial portion of our
   net sales will be denominated in the Euro or currencies of European Union
   countries, we will be exposed to that risk.

   Item 3. Quantitative and Qualitative Disclosures About Market Risk

   The following discussion relates to our exposure to market risk, related to
   changes in interest rates and changes in foreign exchange rates. This
   discussion contains forward-looking statements that are subject to risks and
   uncertainties. Actual results could differ materially due to a number of
   factors, as set forth in the "Risk Factors" included as Exhibit 99.1 on this
   Form 10-Q and included in the "Risk Factors" section of VIA's Annual Report
   on Form 10-K for the year ended December 31, 2000.

   VIA has exposure to financial market risks, including changes in interest
   rates and foreign exchange rates. At September 30, 2001, VIA's financial
   instruments consisted of short-term investments and fixed rate debt related
   to acquisitions and network purchases. Our investments are generally fixed
   rate short-term investment grade and government securities denominated in
   U.S. dollars. At September 30, 2001 all of our investments are due to mature
   within three months and the carrying value of such investments approximates
   fair value. The majority of our debt obligations have fixed rates of
   interest.

   As mentioned previously in the "Foreign Currency Exchange Risks" section, VIA
   has Euro denominated cash accounts, which expose the company to foreign
   currency exchange rate risk. As of September 30, 2001, a 10 percent increase
   or decrease in the level of the Euro exchange rate against the U.S. dollar
   with all other variables held constant would result in a realized gain or
   loss of $3.0 million. Additionally, VIA is exposed to foreign exchange rate
   risk related to its obligations denominated in foreign currencies. These
   obligations are a result of acquiring operating companies in various European
   and Latin American countries. VIA is also subject to risk from changes in
   foreign exchange rates for its international operations that use a foreign
   currency as their functional currency and are translated into U.S. dollars.
   These risks cannot be reduced through hedging arrangements.

                                      -18-
<PAGE>

   PART II.

Item 1.  Legal Proceedings

On November 5, 2001, the law firm of Wolf Haldenstein Adler Freeman & Herz LLP
issued a press release stating that it had initiated a class action lawsuit in
the District Court for the Southern District of New York against VIA NET.WORKS,
Inc., certain of the underwriters who supported our initial public offering
("IPO") and certain of our officers, under the title O'Leary v. Via Net.works et
al [01-CV-9720] (the "Complaint").  While we have not yet received service of
the Complaint, we understand it alleges that the prospectus the Company filed
with its registration statement in connection with our IPO was materially false
and misleading because it failed to disclose, among other things, that: (i) the
named underwriters had solicited and received excessive and undisclosed
commissions from certain investors in exchange for the right to purchase large
blocks of VIA IPO shares; and (ii) the named Underwriters had entered into
agreements with certain of their customers to allocate VIA IPO shares in
exchange for which the customers agreed to purchase additional VIA shares in the
aftermarket at pre-determined prices ("Tie-in Arrangements"), thereby
artificially inflating the Company's stock price.  The Complaint further alleges
violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 and
Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated
thereunder arising out of the alleged failure to disclose and the alleged
materially misleading disclosures made with respect to the commissions and the
Tie-in Arrangements in the prospectus. This Complaint is one of over 150 similar
suits filed to date against underwriters, issuers and their officers alleging
similar activities, known as "laddering".  We believe that any allegations in
the Complaint of wrongdoing on the part of VIA or our officers are without legal
merit and we intend to vigorously defend against them.

Item 2.  Changes in Securities and Use of Proceeds

None.

Use of Initial Public Offering Proceeds

On February 16, 2000, VIA completed its initial public offering of shares of
common stock, par value $.001 per share. VIA's initial public offering was made
pursuant to a prospectus dated February 11, 2000, which was filed with the SEC
as part of a registration statement, file no. 333-91615, that was declared
effective by the SEC on February 10, 2000.

The estimated net offering proceeds to VIA after deducting the estimated
expenses and underwriting discounts and commissions was approximately $333.0
million. From the effective date of the initial public offering through
September 30, 2001, VIA has used $87.3 million for acquisitions of other
businesses, including the repayment of debt for 1999 acquisitions and increases
in VIA's investment in various partially owned subsidiaries, $36.5 million for
capital expenditures and approximately $60.9 million to fund operating losses.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Submission of Matters to a Vote of Security Holders

None.

Item 5. Other Information


Item 6. Exhibits and Reports on Form 8-K

a)  Exhibits

Exhibits
--------

Exhibit 99.1  Risk Factors

b)  Reports on Form 8-K

       VIA filed a report on Form 8-K on August 9, 2001 to announce VIA
       NET.WORKS' second quarter 2001 results and the revision of its 2000 and
       first quarter 2001 financial statements. VIA filed no other reports on
       Form 8-K during the three months ended September 30, 2001.

                                      -19-
<PAGE>

                                   SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, VIA
NET.WORKS, Inc. has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized

                              VIA NET.WORKS, Inc.

Date: November 14, 2001        By: /s/ David M. D'Ottavio
                               --------------------------
                               David M. D'Ottavio
                               Chief Executive Officer, Chairman
                               of the Board of Directors (Duly Authorized
                               Officer)

Date: November 14, 2001        By: /s/ Catherine A. Graham
                               ---------------------------
                               Catherine A. Graham
                               Vice President, Chief Financial Officer and
                               Treasurer (Principal Financial and Accounting
                               Officer)









                                      -20-
<PAGE>

                                 EXHIBIT INDEX

99.1  Risk Factors



























                                      -21-