Feeds

Dotcoms deny they are running out of cash

Barron's Report article puts cat among pigeons

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

Dotcoms have rushed to refute claims made by a respected financial magazine that at least 51 Net firms are on the verge of running out of cash. Research carried out by Pegasus Research International for Barron's, the Dow Jones & Company's business and financial weekly magazine, claimed that time was running out for some dotcoms. It claimed things were so bad that some e-companies could not rely simply on issuing more stock or bonds in a bid to raise more cash. In the very worst cases, companies would have to sell out or face financial oblivion, it said. Among those fingered by Barron's were CDNow, EarthWeb, ShopNow, Secure Computing, and VerticalNet. In a bid to minimise the potential damage caused by the research, dotcoms have rushed to their own defence. Irene Math, senior vp of finance at business portal, EarthWeb, said: "We respectfully disagree with Barron's methodology and conclusions about EarthWeb, because it does not take into account either future performance or recent capital-raising activity. "Their findings are clearly disputed by leading Internet analysts who examine detailed and current financial data that is publicly available." Mark Walsh, President and CEO of b-2-b outfit, VerticalNet, described the findings as "highly confusing". Tim McGurran, senior vp of operations and cfo of Net security e-business, Secure Computing Inc, said: "We respect Barron's reporting and their reputation within the investment community as a leading publication, but are compelled to correct the information provided in their recent article relative to our cash position. "Unfortunately, the Pegasus Research report utilised by Barron's, had a number of errors and oversights which were reported in the article addressing cash burn by Internet companies,'' he said. And CDNow issued a statement disputing the story which claimed the e-tailer had less than one month of cash remaining. "As a result of a strategic investment by Time Warner and Sony, CDNOW expects that it has sufficient cash for at least six months," the company said. Ooooooh, six months' worth of cash -- well, that's alright then. ® Tune in and turn on to Cash Register, for more tales of the Bubble Economy

Providing a secure and efficient Helpdesk

More from The Register

next story
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Lords take revenge on REVENGE PORN publishers
Jilted Johns and Jennies with busy fingers face two years inside
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Yes, yes, Steve Jobs. Look what I'VE done for you lately – Tim Cook
New iPhone biz baron points to Apple's (his) greatest successes
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Edward who? GCHQ boss dodges Snowden topic during last speech
UK spies would rather 'walk' than do 'mass surveillance'
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.