<PAGE>

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

     [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
      EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 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
          of incorporation or organization)      Identification No.)

                       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 May 1, 2001, the aggregate market value of the 53,774,468 shares of common
stock held by non-affiliates of the registrant was $119,917,063.64 based on the
closing sale price ($2.23) of the registrant's common stock as reported on the
Nasdaq National Market on such date. (For this computation, the registrant has
excluded the market value of all shares of its common stock reported as
beneficially owned by executive officers and directors of the registrant and
certain other stockholders; such exclusion shall not be deemed to constitute an
admission that any such person is an "affiliate" of the registrant.) As of May
1, 2001, there were outstanding 54,074,899 shares of the registrant's common
stock and 6,770,001 shares of the registrant's non-voting common stock.

                                EXPLANATORY NOTE


This Form 10-Q/A amends the Registrant's quarterly report on Form 10-Q for the
quarter ended March 31, 2001 as filed on May 11, 2001 and is being filed to
reflect the restatement of the Registrant's consolidated financial statements.
The reasons for and effects of this restatement are presented in Note 9 to the
consolidated financial statements. Except for Items 1 and 2 of Part I, no other
information included in the original report on Form 10-Q is amended by this Form
10-Q/A. The Registrant has not updated disclosures in this Form 10-Q/A to
reflect any events subsequent to the Registrant's initial filing of its
quarterly report on Form 10-Q on May 11, 2001. The Registrant has also not
updated Exhibit 99.1 "Risk Factors" which continues to speak as of May 11, 2001.
For the most recent information concerning the Registrant and updated Risk
Factors, please see the Registrant's Quarterly Report on Form 10-Q for the
quarter ended June 30, 2001.


<PAGE>

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


<TABLE>
<S>                                                                                                  <C>
PART I FINANCIAL INFORMATION

Item 1. Financial Statements:

            Consolidated Condensed Balance Sheets as of March 31, 2001 and December 31,
                2000 (Unaudited and Restated). .............................................          3

            Consolidated Statements of Operations for the three months ended
                March 31, 2001 and 2000 (Unaudited and Restated) ...........................          4

            Consolidated Statements of Cash Flows for the three months ended
                March 31, 2001 and 2000 (Unaudited and Restated)............................          5

            Notes to the Consolidated Financial Statements (Unaudited and Restated) ........          6

Item 2. Management's Discussion and Analysis of Financial Condition and Results
        Of Operations. .....................................................................         10

Item 3. Quantitative and Qualitative Disclosures About Market Risk...........................        17

PART II OTHER INFORMATION...................................................................         18

Item 1. Legal Proceedings...................................................................         18

Item 2. Changes in Securities and Use of Proceeds...........................................         18

Item 3. Defaults Upon Senior Securities.....................................................         18

Item 4. Submission of Matters to a Vote of Security Holders.................................         18

Item 5. Other information...................................................................         18

Item 6. Exhibits and Reports on Form 8-K....................................................         18

SIGNATURES..................................................................................         19

EXHIBIT INDEX...............................................................................         20
</TABLE>



                                       2

<PAGE>

                                     PART I

Item 1. Financial Statements


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


                            (Unaudited and Restated)
                                   -----------


<TABLE>
<CAPTION>
                                                                                     December 31,  March 31,
                                                                                        2000          2001
                                                                                        ----          ----
<S>                                                                                  <C>           <C>
                                        ASSETS

Current assets:
   Cash and cash equivalents                                                          $ 237,839    $ 207,460
   Trade and other accounts receivable, net of allowance of $3,623 and 3,866,
     respectively                                                                        16,570       19,106
   Other current assets                                                                   5,228        6,777
                                                                                      ---------    ---------
        Total current assets                                                            259,637      233,343

Property and equipment, net                                                              39,227       39,194
Goodwill and other acquired intangible assets, net                                      181,082      170,714
Other noncurrent assets                                                                   1,202        1,100
                                                                                      ---------    ---------
        Total assets                                                                  $ 481,148    $ 444,351
                                                                                      =========    =========


                                       LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
   Accounts payable                                                                   $  21,866    $  19,998
   VAT and other taxes payable                                                            2,332        2,116
   Short-term notes and current portion of long-term debt                                 3,265        2,977
   Deferred revenue                                                                      14,360       13,914
   Other current liabilities and accrued expenses                                        11,852       12,583
                                                                                      ---------    ---------
        Total current liabilities                                                        53,675       51,588

Long-term debt                                                                            1,894        1,414
                                                                                      ---------    ---------
        Total liabilities                                                                55,569      53,002

Contingencies

Minority interest in consolidated subsidiaries                                              597          117

Stockholders' equity:
   Common stock, $.001 par value; 125,000,000 shares authorized; 54,061,998 and
     54,074,899 shares issued and outstanding; respectively                                  54           54
   Non-voting common stock, $.001 par value; 7,500,000 shares authorized; 6,770,001
     shares issued and outstanding                                                            7            7
   Additional paid-in capital                                                           558,196      558,064
   Accumulated deficit                                                                 (113,693)    (144,183)
   Deferred compensation                                                                 (6,409)      (5,466)
   Accumulated other comprehensive loss                                                 (13,173)     (17,244)
                                                                                      ---------    ---------
        Total stockholders' equity                                                      424,982      391,232
                                                                                      ---------    ---------

        Total liabilities and stockholders' equity                                    $ 481,148    $ 444,351
                                                                                      =========    =========
</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 and Restated)
                                   -----------


<TABLE>
<CAPTION>
                                                            For the three months ended
                                                                      March 31,
                                                                      ---------

                                                                 2000            2001
                                                                 ----            ----
<S>                                                         <C>             <C>
  Revenue                                                   $     19,896    $     25,436
                                                            ------------    ------------

Operating costs and expenses:
    Internet services                                             10,588          13,491
    Selling, general and administrative                           17,427          23,759
    Depreciation and amortization                                  9,466          15,419
                                                            ------------    ------------

Total operating costs and expenses                                37,481          52,669
                                                            ------------    ------------

Loss from operations                                             (17,585)        (27,233)
                                                            ------------    ------------

Interest income, net                                               1,566           2,525
Other expense, net                                                    --             (45)
Foreign currency losses                                           (1,493)         (5,545)
                                                            ------------    ------------

Loss before income taxes and minority interest                   (17,512)        (30,298)
Income tax expense                                                  (118)           (332)
Minority interest in loss of consolidated subsidiaries               668             140
                                                            ------------    ------------

Net loss attributable to common stockholders                $    (16,962)   $    (30,490)
                                                            ============    ============


Basic and diluted loss per share attributable to
   common stockholders                                      $      (0.56)   $      (0.50)
                                                            ============    ============


Shares used in computing basic and diluted loss per share     30,536,005      60,811,180
                                                            ============    ============

</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 and Restated)
                            ------------------------



<TABLE>
<CAPTION>
                                                                               For the three months ended
                                                                                        March 31,
                                                                                        ---------

                                                                                   2000         2001
                                                                                   ----         ----
<S>                                                                             <C>          <C>
Cash flows from operating activities:

   Net loss                                                                     $ (16,962)   $ (30,490)
   Adjustments to reconcile net loss to net cash used in
      operating activities:
            Depreciation and amortization                                           9,466       15,419
            Employee stock compensation                                             1,578          763
            Provision for doubtful accounts receivable                                  -          859
            Unrealized foreign currency transaction (gains) losses                    (66)       2,321
            Minority interest in loss of consolidated subsidiaries                   (668)        (140)
   Changes in assets and liabilities, net of acquisitions:
            Accounts receivable                                                      (852)      (4,617)
            Other current assets                                                   (1,079)      (1,703)
            Accounts payable                                                          268       (1,009)
            Other current liabilities and accrued expenses                          3,458        1,531
            Deferred revenue                                                        1,804          309
            Other noncurrent assets                                                   (68)         (92)
                                                                                ---------    ---------

            Net cash used in operating activities                                  (3,121)     (16,849)
                                                                                ---------    ---------

Cash flows from investing activities:
   Acquisitions, net of cash acquired                                             (20,799)      (7,882)
   Proceeds from the disposition of operating subsidiary                                -          330
   Purchases of property and equipment                                             (6,180)      (5,146)
   Other assets                                                                    (5,154)           -
                                                                                ---------    ---------

            Net cash used in investing activities                                 (32,133)     (12,698)
                                                                                ---------    ---------

Cash flows from financing activities:
   Repayment of debt                                                               (1,340)        (652)
   Proceeds from issuance of common stock, net                                    332,930           47
   Proceeds from borrowings                                                           636          169
                                                                                ---------    ---------

            Net cash provided by (used in) financing activities                   332,226         (436)
                                                                                ---------    ---------

Effect of currency exchange rate changes on cash                                      818         (396)
                                                                                ---------    ---------

Net increase (decrease) in cash and cash equivalents                              297,790      (30,379)
Cash and cash equivalents, beginning of period                                     20,067      237,839
                                                                                ---------    ---------

Cash and cash equivalents, end of period                                        $ 317,857    $ 207,460
                                                                                =========    =========


Noncash investing and financing transactions:
     Common stock issued to satisfy debt                                        $   5,183    $       -
                                                                                =========    =========


     Common stock issued in connection with acquisitions                        $   3,274    $       -
                                                                                =========    =========
</TABLE>


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

                                       5

<PAGE>

                               VIA NET.WORKS, INC.

            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (Continued)
                                   (Unaudited)

1.  Basis of Presentation and Restatement

    These consolidated financial statements for the three month periods ended
    March 31, 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 March 31, 2001 and the results of operations and cash flows for the
    three month periods ended March 31, 2000 and 2001. The results of operations
    for the three-month period ended March 31, 2001 may not be indicative of the
    results expected for any succeeding quarter or for the year ending December
    31, 2001.


     On August 9, 2001, the Company announced that it was revising its financial
     statements for the year ended December 31, 2000 and for the first quarter
     2001 to correct certain revenue recognition and cost accounting errors
     arising at one of the Company's acquired subsidiaries. During the course of
     a normal review of aged accounts receivable at the subsidiary and a
     subsequent detailed review, the Company, assisted by outside professionals,
     identified improper accounting related to the recognition of certain
     revenue and associated costs during the period. The revisions primarily
     address the reversal of recorded revenue that was not adequately supported
     by fully executed customer contracts and of costs that had not been
     incurred; other errors addressed include revenue recognized before the
     provision of service where revenue should have been spread over the
     contract period or recognized upon completion, and revenue recognized when
     payment was in bartered services and the value of those bartered services
     could not be determined. The principal effects of the revisions as to each
     of the affected periods was noted in the Company's announcement of August
     9, 2001, as filed with the Securities and Exchange Commission on Form 8-K
     dated August 10, 2001. See Note 9 to these consolidated financial
     statements. In this Form 10-Q/A, references or comparisons to results in
     2000 or the first quarter of 2001 are to the restated results.



2.  Comprehensive Loss

    Comprehensive loss for the three months ended March 31, 2000 and 2001 was as
follows (in thousands of U.S. dollars):


                                                  March 31,     March 31,
                                                     2000         2001
                                                     ----         ----
                                                       (As Restated)

      Net loss                                    $(16,962)     $(30,490)
      Foreign currency translation adjustment       (1,861)       (4,071)
                                                  --------      --------
      Comprehensive loss                          $(18,823)     $(34,561)
                                                  ========      ========


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, ecommerce, 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:

                                 Number of    Aggregate
                                Businesses    Purchase    Assets  Liabilities
                                 Acquired       Price    Acquired   Assumed
                                 --------       -----    --------   -------
                                          (In thousands of U.S. dollars)
  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

                                   6

<PAGE>

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

In connection with the acquisition of Net4You, we paid approximately $195,000 to
the minority shareholders of that company in the first quarter of 2001. In
connection with the acquisition of DNS, we are obligated to pay off an
acquisition related promissory note, for approximately $901,000, to one of the
former owners, which we anticipate paying in the second quarter 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.

4. Property and Equipment

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

                                            December 31,   March 31,
                                                2000          2001
                                                ----          ----
Hardware and other equipment ..............   $ 23,615      $ 23,997
Network and data center assets ............     25,075        24,746
Software ..................................      7,595         9,359
Furniture and fixtures ....................      2,999         3,286
                                              --------      --------

                                                59,284        61,388
Accumulated depreciation and amortization..    (20,057)      (22,194)
                                              --------      --------

Property and equipment, net ...............   $ 39,227      $ 39,194
                                              ========      ========


Total depreciation expense was $2.1 million and $3.3 million for the three
months ended March 31, 2000 and 2001, respectively. In the United Kingdom in the
first quarter 2001, approximately $1.6 million in managed assets that were
previously held under the network and data center asset category were
reclassified as hardware. This reclassification was made based on the
determination that assets held on the customer premises should be classified as
hardware rather than network assets. Certain network assets as of December 31,
2000 have been reclassified as hardware to reflect the current year
presentation.

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):


                                       7

<PAGE>

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

                               December 31,   March 31,
                                   2000          2001
                                   ----          ----
Goodwill                        $ 220,378     $ 221,738
Customer base                       8,360         8,595
Employee workforce                  3,760         3,760
Accumulated amortization          (51,416)      (63,379)
                                ---------     ---------

Total                           $ 181,082     $ 170,714
                                =========     =========


Total amortization expense was $7.4 million and $12.1 million for the three
months ended March 31, 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.

6. Short-term Notes and Long-term Debt

Short-term notes and long-term debt consisted of the following (in thousands of
U.S. dollars):

<TABLE>
<CAPTION>
                                                                     December 31,    March 31,
                                                                          2000          2001
                                                                          ----          ----
<S>                                                                  <C>             <C>
Acquisition debt                                                        $ 1,495       $   901
Debt related to IRU Agreements, 12%, due quarterly to 2002                2,476         2,476
Capital lease obligations at interest rates ranging from 7.8% to
    8.0%, due monthly through 2004                                          866           537
Notes payable, due monthly through 2002                                     322           477
                                                                        -------       -------

                                                                          5,159         4,391
Less current portion                                                     (3,265)       (2,977)
                                                                        -------       -------

Long-term portion                                                       $ 1,894       $ 1,414
                                                                        =======       =======
</TABLE>

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

7. Contingencies

From time to time, VIA 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.

8. 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 March 31, 2001 the Company served
primary markets in 14 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, which are not allocated to one of the
operating segments, are shown to reconcile to the total consolidated figures.


                                       8

<PAGE>

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

Beginning in the quarter ended September 30, 2000, VIA modified its definition
of total segment assets and 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 March
31, 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
months ended March 31, 2000 and 2001, net of intercompany revenue of $948,000
and $1.7 million, respectively, which was eliminated upon consolidation. 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
                                                      ---------    -------     -------        ------        ------       -----
                                                                                    (As Restated)

<S>                                                  <C>           <C>         <C>         <C>           <C>           <C>
The three months ended March 31, 2000:
   Revenue ......................................    $      --    $   2,387    $   1,423    $   9,469     $   6,617    $  19,896
   EBITDA .......................................    $  (3,887)   $  (1,061)   $    (915)   $     550     $  (1,228)   $  (6,541)
   Assets .......................................    $ 358,373    $  35,754    $  13,157    $  68,306     $  47,057    $ 522,647
The three months ended March 31, 2001:
   Revenue ......................................    $      --    $   4,173    $   1,747    $   8,765     $  10,751    $  25,436
   EBITDA .......................................    $  (4,153)   $  (1,258)   $  (1,212)   $  (1,627)    $  (2,801)   $ (11,051)
   Assets .......................................    $ 258,803    $  75,389    $   3,919    $  45,219     $  61,021    $ 444,351
</TABLE>


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


                                             For the three     For the three
                                             months ended      months ended
                                            March 31, 2000    March 31, 2001
                                            --------------    --------------
                                                     (As Restated)

EBITDA                                         $ (6,541)         $(11,051)
Non-cash compensation                            (1,578)             (763)
Depreciation and amortization                    (9,466)          (15,419)
                                               --------          --------

  Loss from operations                          (17,585)          (27,233)
  Other income, interest expense and
      foreign currency losses                        73            (3,065)
                                               --------          --------

  Loss before income taxes and
      minority interest                        $(17,512)         $(30,298)
                                               ========          ========



The three largest revenue producing countries for the three month periods ended
March 31, 2000 and 2001, the United Kingdom, Germany and Mexico, generated
revenues in the amounts of $8.2 million, $3.2 million and $2.4 million, and $7.5
million, $4.0 million and $3.2 million, respectively. Revenue from our U.S.
operating company, for the three months ended March 31, 2001 was $996,000.


9. Restatement of Financial Statements


As announced on August 9, 2001, the Company revised its financial statements for
the year ended December 31, 2000 and for the first quarter 2001 to correct
certain revenue recognition and cost accounting errors arising at one of the
Company's acquired subsidiaries. During the course of a normal review of aged
accounts receivable at the subsidiary and a subsequent detailed review, the
Company, assisted by outside professionals, identified improper accounting
related to the recognition of certain revenue and associated costs during the
period. The revisions primarily address the reversal of recorded revenue that
was not adequately supported by fully executed customer contracts and of costs
that had not been incurred; other errors addressed include revenue recognized
before the provision of service where revenue should have been spread over the
contract period or recognized upon completion, and revenue recognized when
payment was in bartered services and the value of those bartered services could
not be determined. The Company's financial statements for the relevant periods
have been restated to adjust the financial results appropriately. The following
charts detail the effects of the restatements on the quarters ended March 31,
2001 and 2000 and the year ended December 31, 2000 as follows:




--------------------------------------------------------------------------------
                                               Three months ended March 31, 2001
                                                      As Reported   As Restated
--------------------------------------------------------------------------------
Statement of Operations Data:
   Revenue
      Access                                              12,923        12,998
      Value added                                         12,530        11,889
      Other                                                  577           549
--------------------------------------------------------------------------------
   Total Revenue                                          26,030        25,436
--------------------------------------------------------------------------------
   Direct Costs                                           13,648        13,491
--------------------------------------------------------------------------------
   Loss from Operations                                  (27,248)      (27,333)
--------------------------------------------------------------------------------
   Net Income (Loss)                                     (30,505)      (30,490)
--------------------------------------------------------------------------------
   Net Income (Loss) per share:                       $    (0.50)    $   (0.50)
--------------------------------------------------------------------------------

Balance Sheet Data
--------------------------------------------------------------------------------
   Accounts Receivable, net                               22,992        19,106
--------------------------------------------------------------------------------
   Other current liabilities and accrued expenses         13,718        12,583
--------------------------------------------------------------------------------
   Accumulated other comprehensive income                (17,266)      (17,244)
--------------------------------------------------------------------------------
   Accumulated deficit                                  (141,410)     (144,183)
--------------------------------------------------------------------------------




--------------------------------------------------------------------------------
                                               Three months ended March 31, 2000
                                                      As Reported   As Restated
--------------------------------------------------------------------------------
Statement of Operations Data:
   Revenue
      Access                                              12,566        12,309
      Value added                                          6,592         6,726
      Other                                                  861           861
--------------------------------------------------------------------------------
   Total Revenue                                          20,019        19,896
--------------------------------------------------------------------------------
   Direct Costs                                           10,364        10,588
--------------------------------------------------------------------------------
   Loss from Operations                                  (17,238)      (17,585)
--------------------------------------------------------------------------------
   Net Income (Loss)                                     (16,615)      (16,962)
--------------------------------------------------------------------------------
   Net Income (Loss) per share:                       $    (0.54)    $   (0.56)
--------------------------------------------------------------------------------

-------------------------------------------------------------------------------
                                                    Year ended December 31, 2001
                                                      As Reported   As Restated
--------------------------------------------------------------------------------
Balance Sheet Data
--------------------------------------------------------------------------------
   Accounts Receivable, net                               20,305        16,570
--------------------------------------------------------------------------------
   Other current liabilities and accrued expenses         12,828        11,852
--------------------------------------------------------------------------------
   Accumulated other comprehensive income                (13,202)      (13,173)
--------------------------------------------------------------------------------
   Accumulated deficit                                  (110,905)     (113,693)
--------------------------------------------------------------------------------


                                       9

<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.


In this Item 2, references or comparisons to results in 2000 or the first
quarter 2001 are to the restated results. See Note 9 to the consolidated
financial statements.


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 our Internet services providers in 14
countries, all of which have been acquired since June 1998. We currently operate
in Argentina, Austria, 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, and Internet security services such as managed firewalls and
virtual private networks, or VPNs. Our U.S. operation allows us to meet the U.S.
web hosting and security 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,
     .    continuing investment in network infrastructure and product
          development.


                                       10

<PAGE>

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. We are in the process of connecting our U.S.
operations to our network and expect to expand our network and network
operations center infrastructure to Latin America as capacity becomes
commercially available.

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 which 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 14 countries organized into four
geographic operating regions:

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


                                       11

<PAGE>


<TABLE>
<CAPTION>
                                                                                                          Percentages of
                                                                                                          --------------
                                                                                                           Total Revenue
                                                                                                           -------------
                                                                                                          for the Quarter
                                                                                                          ---------------
                                                                                                                Ended
                                                                                                                -----
Country of Operation                             Operating Company                                 March 31, 2001(as restated)
--------------------                             -----------------                                 ---------------------------
<S>                       <C>                                                                      <C>
Central and Western Europe:
   Austria                Net4You .............................................................                  1%
   France                 Artinternet .........................................................                  2
                          DNS .................................................................                 10
                          MNET. ...............................................................                  1
   Germany                VIA NET.WORKS Deutschland (formerly GTN). ...........................                  9
                          Highspeed-Server Eisnet .............................................                  1
                          INS .................................................................                  2
                          ISAR. ...............................................................                  3
   The Netherlands        bART. ...............................................................                  4
                          IAE .................................................................                  3
   Switzerland            M&CNet. .............................................................                  2
                          VIA NET.WORKS (Schweiz) (formerly Smartcomp). .......................                  3
United Kingdom, Ireland and Southern Europe:
   United Kingdom         VIA NET.WORKS UK. ...................................................                 29
                          (formerly i-way, U-Net, WWS and Netlink).
   Ireland                VIA NET.WORKS Ireland (formerly MediaNet) ...........................                  1
   Italy                  VIA NET.WORKS Italia (formerly Meridian Microtech). .................                  1
   Portugal               VIA NET.WORKS Portugal. .............................................                  2
   Spain                  VIA NET.WORKS Spain .................................................                  2
South America:
   Argentina              VIA NET.WORKS Argentina .............................................                  2
                          ServiceNet. .........................................................       (less than)1
   Brazil                 VIA NET.WORKS Brasil (formerly Dialdata). ...........................                  4
North America:
   Mexico                 VIA NET.WORKS Mexico (formerly InfoAcces) ...........................                 13
   United States          VIA NET.WORKS USA (formerly IMC Online) .............................                  4
</TABLE>


RESULTS OF OPERATIONS

Three months ended March 31, 2001 (as restated) compared with the three months
ended March 31, 2000 (as restated)

Revenue


                                       Three months ended          % Increase/
                                March 31, 2000    March 31, 2001    (Decrease)
                                --------------    --------------    ----------
                                         (in thousands of U.S. dollars)

Residential Access                 $ 1,967           $ 1,823            (7)%
% of Total Revenue                      10%                7%

Business Access                    $10,342           $11,175             8%
% of Total Revenue                      52%               44%

Value Added Services               $ 7,587           $12,438            64%
% of Total Revenue                      38%               49%

Total Revenue                      $19,896           $25,436            28%


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, derives primarily from


                                       12

<PAGE>

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 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 March 31, 2001 increased 28% to $25.4 million
as compared to $20.0 million for the three months ended March 31, 2000. Our
first quarter 2001 revenue was favorably impacted by the acquisition of 6
operations that occurred between April 1, 2000 and December 31, 2000.
Residential access revenue declined by 7% in the first quarter 2001, as compared
to the same period in 2000, reflecting the continuing run-off of low margin
residential customers. Business access revenue increased only slightly, in line
with our strategy of focusing on higher margin revenue streams. VIA obtained its
wholesale and residential customer bases as part of our original acquisitions.
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
increased by 64% in 2001, as compared to the same period in 2000. We expect
value added services revenue to continue to increase in 2001, as we focus on
these higher margin revenue streams.


Internet services operating costs


<TABLE>
<CAPTION>
                                                      Three months ended             % Increase/
                                               March 31, 2000     March 31, 2001      (Decrease)
                                               --------------     --------------      ----------
                                                         (in thousands of U.S. dollars)
<S>                                            <C>                <C>                 <C>
Internet services operating costs                     $10,588            $13,491            27%
% of Total Revenue                                        53%                 53%
</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 as we increase capacity to meet
customer demand. 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 $13.5 million for the three months
ended March 31, 2001. We had $10.6 million of Internet services operating costs
for the three months ended March 31, 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. The 27% increase in
costs from 2000 to 2001 is due to the costs incurred by the 6 consolidated
operations acquired between April 1, 2000 and December 31, 2000. Additionally,
direct costs increased at many of our operating companies due to additional
investment in network capacity and configuration.



                                       13

<PAGE>

Selling, general and administrative


<TABLE>
<CAPTION>
                                                             Three Months ended               % Increase/
                                                      March 31, 2000      March 31, 2001      (Decrease)
                                                      --------------      --------------      ----------
                                                                (in thousands of U.S. dollars)
<S>                                                   <C>                 <C>                 <C>
Selling, general & administrative costs                      $17,427             $23,759             36%
% of Total Revenue                                                87%                 93%
</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. We expect that our selling, general
and administrative expenses will increase to support our growth, but decrease
over time as a percent of revenue.



We incurred selling, general and administrative expenses of $23.8 million for
the three months ended March 31, 2001, a 36% increase over the $17.4 million we
incurred for the three months ended March 31, 2000. Of the $23.8 million in
costs in the first quarter 2001, $5.4 million, or 23%, of the costs were
incurred by our corporate and regional organizations and $18.4 million, or 77%,
of the expenses were incurred by our 25 subsidiaries. Corporate and regional
expenses decreased, down 2% from the first quarter of 2000, and costs at the
operating subsidiaries increased 54% from the first quarter of 2000. The
increase in costs is attributable to planned increases in sales staffing and
training in support of our organic growth and costs associated with the
Company's integration activities in the first quarter 2001. Additionally, $2.5
million or 39% of the increase in costs at the operating subsidiaries was due to
the 6 consolidated operations acquired between April 1, 2000 and December 31,
2000.


Depreciation and amortization


<TABLE>
<CAPTION>
                                                 Three Months ended            % Increase/
                                           March 31, 2000    March 31, 2001     (Decrease)
                                           --------------    --------------     ----------
                                                   (in thousands of U.S. dollars)
<S>                                        <C>               <C>               <C>
Depreciation and amortization                      $9,466           $15,419            63%
% of Total Revenue                                     47%               61%
</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. We expect depreciation
expense to increase as we expand our network supporting infrastructures.

Our depreciation and amortization expense was $15.4 million for the three months
ended March 31, 2001, up from $9.5 million for the three months ended March 31,
2000. This increase was primarily due to the amortization of goodwill arising
from the acquisitions of the 6 consolidated operations completed between April
1, 2000 and December 31, 2000 and the partial period amortization for the 3
operating companies acquired in the first quarter 2000. The acquisition of these
operations and the implementation of our international network also increased
our depreciation expense for telecommunications equipment, computers and other
fixed assets. For the 2001 period, $12.1 million, or 78%, of our depreciation
and amortization expense was related to the amortization of acquisition goodwill
and $3.3 million, or 22% was related to the depreciation of fixed assets. For
the 2000 period,


                                       14

<PAGE>

$7.4 million, or 79%, of our depreciation and amortization expense was related
to the amortization of acquisition goodwill and $2.1 million, or 21% was related
to the depreciation of fixed assets.

Interest income and expense

                                       Three Months ended           % Increase/
                               March 31, 2000   March 31, 2001      (Decrease)
                               --------------   --------------      ----------
                                   (in thousands of U.S. dollars)
Interest income and expense        $1,566            $2,525             61%
% of Total Revenue                      8%               10%


For the three months ended March 31, 2001, we earned $2.6 million in interest
income, a 30% increase over the $2.0 million we earned for the three months
ended March 31, 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. For the
2001 period, we also incurred $118,000 of interest expense, as compared to
$445,000 million of interest expense incurred in 2000. Interest expense relates
to the debt agreements arising from the notes payable to the former owners of
businesses acquired and lease financing of equipment in our operating
subsidiaries.

Foreign currency gains and losses

                                         Three Months ended         % Increase/
                                    March 31, 2000  March 31, 2001  (Decrease)
                                    --------------  --------------  ----------
                                      (in thousands of U.S. dollars)
Foreign currency gains and losses      $(1,493)        $(5,545)         271%
% of Total Revenue                           7%             22%


We recognized a $5.5 million foreign currency loss for the three months ended
March 31, 2001, as compared to a $1.5 million foreign currency loss for the same
period in the prior year. The loss in both periods was primarily due to the
impact of the fluctuation in the value of the Euro on our Euro denominated cash
accounts, which were established to hold part of the proceeds of our initial
public offering in February 2000. The remainder of the loss was contributed by
fluctuations in the five other non-Euro-linked currencies in which we hold
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 March 31, 2001, we had cash and cash equivalents of $207.5
million.

Cash used in operating activities was $16.8 million for the three months ended
March 31, 2001 and $3.1 million for the three months ended March 31, 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 $12.7 million for the three months ended
March 31, 2001 and $32.1 million for the same period in 2000. In the 2001
period, we used cash to increase our investment in one partially owned operation
and to pay two contingent earn-out payments in connection with two companies
acquired in 2000. In the first quarter 2000, cash was primarily used for the
acquisitions of DNS, Net4You and ISAR.

                                       15

<PAGE>

Cash used by financing activities was $436,000 for the three months ended March
31, 2001. In the same period in 2000, cash provided by financing activities was
$332.2 million. In the first quarter 2001, cash was used primarily to repay
debt. In the corresponding period in 2000, cash was primarily generated by the
initial public offering of our common stock in February 2000.

We continue to pursue an aggressive internal growth strategy, and 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.

As a result of our acquisitions, we will continue to amortize substantial
amounts of goodwill and other intangible assets. As we grow, we expect that the
amount of goodwill and other intangibles we will amortize in connection with our
investments will represent an increasingly smaller portion of our expenses.
Therefore, we expect to continue to incur net losses until that point in time
when the goodwill and other intangibles we amortize represents a sufficiently
small amount of our expenses that it is exceeded by our net income before
amortization.

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 March 31, 2001, management concluded that no event had occurred
in any of its operations that would result in an 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.

The foregoing statements regarding our liquidity and need for additional capital
resources, as well as our expectations of future amortization of goodwill and
other intangibles, 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. During the three month period ended March
31, 2001, we experienced similar exchange rate fluctuations in all eight of the
Euro-linked currencies in which we transact business. The Euro-linked currencies
varied by approximately 9% in relation to the U.S. dollar during the first
quarter of 2001, and at March 31, 2001 were approximately 6% below where they
were at the beginning of the year. We realized foreign currency losses of $3.2
million for the three-month period, 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


                                       16

<PAGE>

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.

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 March 31, 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 March
31, 2001 all of our investments are due to mature within twelve 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 March 31, 2001, a 10 percent increase or decrease in
the level of the Euro exchange rate against the


                                       17

<PAGE>

U.S. dollar with all other variables held constant would result in a realized
gain or loss of $5.0 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.

PART II.

Item 1. Legal Proceedings

We are not a party to any material legal proceedings.

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 March
31, 2001, VIA has used $86.6 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, $25.4 million for capital
expenditures and approximately $30.8 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

None.

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 February 21, 2001 to announce the date of
     VIA's 2001 Annual Shareholders' Meeting. VIA filed no other reports on Form
     8-K during the three months ended March 31, 2001.


                                       18

<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: August 15, 2001        By: /s/ David M. D'Ottavio
---------------------        --------------------------

                                     David M. D'Ottavio
                                     Chief Executive Officer, Chairman
                                     of the Board of Directors (Duly
                                     Authorized Officer)

Date: August 15, 2001        By: /s/ Catherine A. Graham
---------------------        ---------------------------

                                     Catherine A. Graham
                                     Vice President, Chief Financial Officer
                                     and Treasurer (Principal Financial and
                                     Accounting Officer)


                                       19

<PAGE>

                                  EXHIBIT INDEX

99.1 Risk Factors

                                       20