Feeds

Dotcoms deny they are running out of cash

Barron's Report article puts cat among pigeons

  • alert
  • submit to reddit

Top 10 endpoint backup mistakes

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

A new approach to endpoint data protection

More from The Register

next story
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned devices?