Better late than never...
March 20, 2000 22:53
VerticalNet Clarifies Market Confusion
HORSHAM, Pa.--(BUSINESS WIRE)--March 20, 2000--A study prepared by Pegasus Research International, as cited by Barron's in its March 20, 2000 cover story on the cash burn rates of Internet companies, is "highly confusing," according to Mark Walsh, President and CEO of VerticalNet, Inc. (Nasdaq: VERT).
The facts: At the end of 1999, VerticalNet showed
-- $14 million in cash and cash equivalents
-- $44 million in short term investments and
-- $24 million in long-term investments.
This totals approximately $82 million in liquidity as of December 31, 1999. It appears that Pegasus used only cash and cash equivalents for purposes of its study and did not include short and long-term marketable securities readily convertible into cash.
On January 20, 2000, VerticalNet announced a commitment by Microsoft to invest $100 million in convertible preferred stock of VerticalNet, including a three-year revenue commitment. Additionally, VerticalNet, through an earlier investment in Tradex Technologies, Inc., has a right to receive shares of the common stock of Ariba, Inc. valued (based on Ariba's closing price on March 20, 2000) at approximately $71.4 million. After giving effect to the Microsoft investment and the current value of the shares of Ariba, VerticalNet will have more cash than it had after it completed its initial public offering in February 1999.
About VerticalNet, Inc.
VerticalNet, Inc. (www.verticalnet.com), owns and operates 55 industry-specific Web sites designed as online business-to-business communities, known as vertical trade communities. These vertical trade communities provide users with comprehensive sources of information, interaction and e-commerce. They are grouped into the following industry sectors: ADVANCED TECHNOLOGIES, COMMUNICATIONS, ENVIRONMENTAL, FOOD AND PACKAGING, FOODSERVICE AND HOSPITALITY, HEALTHCARE/SCIENCE, MANUFACTURING AND METALS, PROCESS, PUBLIC SECTOR, SERVICE, TEXTILES AND APPAREL.
Additionally, VerticalNet provides auctions, catalogs, bookstores, career services and other e-commerce capabilities horizontally across its communities with sites like Industry Deals.com, IT CareerHub.com, LabX.com, Professional Store.com. VerticalNet's NECX Exchange provides an exchange for the electronic components industry.
This announcement contains forward-looking statements that involve risks and uncertainties, including statements relating to the value of VerticalNet's investment in Tradex Technologies (Ariba's common stock) as well as statements that are preceded by, followed by or include the words "believes," "plans," "intends," "expects," "anticipates," or similar expressions. For such statements, VerticalNet claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. Factors that could cause actual results to differ from those contained in the forward-looking statements include the possibility that the market price of Ariba, Inc. will change from its level on March 20, 2000, the possibility that the conversion ratio used to determine the number of shares of Ariba, Inc. into which shares of Tradex Technologies convert is different from the estimate provided in the Information Statement that Tradex Technologies provided to its shareholders in February 2000, as well as those factors set forth in VerticalNet's Annual Report on Form 10-K for the period ended December 31, 1998 and VerticalNet's Quarterly Report on Form 10-Q for the quarter ended September 30, 1999, both of which have been filed with the SEC.
VerticalNet is the registered trademark of VerticalNet, Inc. All other names are trademarks and/or registered trademarks of their respective owners.
CONTACT: VerticalNet, Inc.
by
PepperCom
Media Contact:
Peter Harris, 212/931-6112
pharris@peppercom.com
or
VerticalNet, Inc.
Corporate Contact:
Muriel Lange, Director Investor Relations, 215/315-3367
mlange@verticalnet.com
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