Monday March 20, 10:38 pm Eastern Time
Company Press Release
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 - news).
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.
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