Network-1 runs out of cash, seeks buyer

Network-1 Security Solutions Inc, the Nasdaq-listed firewall vendor, said last week it is seeking a buyer for the company and for its CyberwallPLUS distributed firewall product line, as it rapidly runs out of cash to continue operations.

The Waltham, Massachusetts-based firm said in November it could not foresee any material revenue from sales of its products and discontinued them to reduce costs. Network-1 says it now has the funds to last through the end of 2003.

In its last available financial statement, the company said in the nine months ended September 30 2002 its revenue was $521,000, down from $906,000 in the same period the previous year. At the same time, the company reduced its headcount from 39 to 8.

Network-1 said Thursday that it has reduced its workforce still further to keep it afloat while it seeks funding, a merger partner, or a company to take its technology off its hands. The company had $3.2m in current assets on its September 30 balance sheet.

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