>if they really do have $20M, and they burned
>through $7M in nine months, that would mean,
>if they continue to burn through cash at the same
>rate, with no revenues, they could last another two years.
arguably, a more realistic [and admittedly simplistic] scenario would be to only consider the three (3) months ending 30 Sept 1999 v. nine months ending Sept 1999 as relevant to CSCC viz z viz...
"...For the third quarter ended September 30, 1999, the Company's new Internet communications and collaboration software business recognized a net loss from operations of $1.0 Million or $0.20 per share..." Source: 11 Nov '99 CSCC Company Press Release
the six (6) months ending 30 June 1999 'Continuing Operations' numbers factored in expenses associated with ThrustMaster Hardware v. exclusively CSCC IP Telephony i.e. non-Internet operations, an employee count >75, etc. of which, FASB/U.S. GAAP required CSCC to account for within CSCCs 'Continuing Operations' when, in fact, they were not and said 'co-mingled' expenses[1.] for six months ending 30 June 1999 should simply be considered extraordinary or non-recurring. Accordingly, said 3-months ending 30 Sept 1999 'Internet Continuing Operations' loss of ~<$1M> would theoretically translate into [all things equal] that CSCCs $20M could sustain a $1M Internet continuing operations quarterly loss for ~20 quarters and that is not factoring in depreciation which is a non-cash charge which could suggest said $20M could sustain CSCC for >20 quarters or five (5) years v. two (2) years...
[1.] "...Operating expenses for ``continuing operations' for the second quarter ended June 30, 1999 and six months ended June 30, 1999 were $586,000 and $1,034,000 respectively and reflect certain operating expenses not incurred exclusively by the Company's new Internet communications software business during those periods. Generally accepted accounting principles require the Company to present operating expenses for these periods as if the Company's hardware game controller business had been ``discontinued' as of January 1, 1999 and that a certain level of general and administrative expenses would have been incurred notwithstanding the fact that the Company's new Internet software business did not receive the actual economic benefit of the additional management time and attention such expense allocation otherwise suggests..." -Source: ThrustMaster Company release for six-months ending 30 June 1999
so one must simply ask themself is a $1M quarterly loss for an Internet.com with $20M in cash contemporaneous with strategic alliances with Intel©, PeopleLink©, EarthLink©, WON.net, Compaq© [ref/ Chumbo® OEM/TeenLink?], and a warrant option/strategic alliance with Go2Market.com with a pending release of WeCanTalk 3.0 within one (1) quarter bad news, a non-event, or a unique Internet.com investment opportunity... |
