Feeds

ExciteAtHome faces financial ruin

Things don't look good

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

ExciteAtHome could be on the verge of going titsup.com amid fears that it doesn't have enough cash to see it through to the end of the year.

Shares in the broadband and media outfit plunged by almost a half yesterday as investors deserted the troubled dotcom.

By the close ExciteAtHome's stock price had fallen to just 47 cents - a drop of 40 cents.

In a statement to the SEC the company said: "We will need financing to support our operations in the future, and financing may not be available to us on favorable terms or at all.

"Despite our recent convertible note financing and our recently announced backbone capacity agreement with AT&T, we will need to raise additional funds before the end of 2001 to support our business operations. If we are unsuccessful at raising sufficient funds, this would have a material adverse impact on our operations and liquidity."

And its auditors, Ernst & Young said that it had a "substantial doubt about the company's ability to continue as a going concern".

Standard & Poor moved swiftly and slashed its credit rating for the ailing outfit from "B-" to "CCC" - a rating only given to companies in dire financial straits.

Part of that downgrade is due to the fact that the company is burdened with almost a $1 billion in debt and made a net loss of $346 million in the last quarter.

Like many dotcoms ExciteAtHome has been hit hard by the steep downturn in advertising revenues. With this situation unlikely to improve in the near future, things now look bleak for ExciteAtHome.

On Friday it made a further 200 staff redundant, bringing the total number of job losses this year to around 800.

ExciteAtHome was created in 1999 following the merger of portal Excite.com and broadband outfit AtHome. On the face of it, the content and distribution deal made perfect sense. However, the combined outfit has consistently failed to deliver anything approaching a profit. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
FCC, Google cast eye over millimetre wireless
The smaller the wave, the bigger 5G's chances of success
It's even GRIMMER up North after MEGA SKY BROADBAND OUTAGE
By 'eck! Eccles cake production thrown into jeopardy
Mobile coverage on trains really is pants
You thought it was just *insert your provider here*, but now we have numbers
Don't mess with Texas ('cos it's getting Google Fiber and you're not)
A bit late, but company says 1Gbps Austin network almost ready to compete with AT&T
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.