XYBR - Xybernaut Denies Speculation It Won $750 Mln Contract
IN BRIEF
Monday, May 28, 2001; Page E05
• Xybernaut's shares surged 40 percent on speculation that the company won a $750 million contract from International Business Machines Corp. Several dozen postings appeared on Internet message sites maintained by Yahoo, but Xybernaut chief executive Edward G. Newman denied speculation that his company would receive such a contract. "The rumor mills are roaring," Newman said in an e-mail that was obtained by Bloomberg News. "I just want to assure you all in writing for the record that Xybernaut was not the source of any of these rumors, and we have been denying them whenever we have the opportunity to do so."
Xybernaut shares closed Friday at $5.46, up $1.43 a share, on trading of 6.9 million shares, or 15 times its average volume for the past three months.
quote.bloomberg.com
Xybernaut Denies Speculation It Won $750 Mln Contract (Update1)
By David Evans
Fairfax, Virginia, May 25 (Bloomberg) -- Xybernaut Corp.'s Chief Executive denied speculation that the maker of computers worn on the human body will soon receive a $750 million contract from International Business Machines Corp.
Xybernaut shares surged 40 percent after several dozen postings appeared on Internet message sites maintained by Yahoo! Inc. that said the company won a $750 million IBM contract.
``The rumor mills are roaring,'' Chief Executive Edward G. Newman, wrote in an e-mail, the contents of which were obtained by Bloomberg News. ``I just want to assure you all in writing for the record that Xybernaut was not the source of any of these rumors, and we have been denying them whenever we have the opportunity to do so.''
Newman declined an interview request. John Moynahan, chief financial officer, declined to comment. ``I really can't comment on rumors,'' he said.
``Xybernaut buys technology and manufacturing services from IBM,'' said Tara Sexton, an IBM vice president. ``The relationship hasn't changed for two years.''
Xybernaut shares rose $1.43 to $5.46 on trading of 6.9 million shares, or 15 times its average trading volume for the past three months. The stock, which is listed on the Nasdaq National market, traded as high as $5.67.
The company's loss grew to $24.2 million, or 63 cents a share, in 2000 from $18.5 million, or 76 cents a share, in 1999. Average shares outstanding increased to 38.5 million from 24.2 million, as revenue increased to $9.5 million from $8.3 million.
May 14, 2001
Xybernaut Corp 1Q Losses 13c A Share Vs 14c
Xybernaut Corp.
1st Quar March 31:
2001 2000
Revenue $2,275,222 $2,104,472
Net income (5,936,589) (4,775,415)
Avg shrs 45,395,818 35,421,340
Shr earns
Net income (.13) (.14)
Figures in parentheses are losses.
Revenue from the company's consulting operations were $900,000 in the first quarter compared with $600,000 a year earlier.
Xybernaut Corp. completed the first quarter with $3.5 million in cash and $9.1 million in shareholder's equity.
(The net loss per share would have been nearly 17 cents, but for the 10 million share dilution from a private placement). XYBR is gonna need more cash, and really soon.
Looks like a good short to zero, assuming the rumor about a $ 750 million contract with IBM is untrue. If untrue, XYBR sure as heck is a good near-term short. |
