Tony, they actually had over $210.0 MM in cash at the end of
June. While they lost over $450.0 MM during the first nine
months of their fiscal year, a good chunk of it was related
to the amortization of goodwill. They have not filed their
10-K yet, but the following is an excerpt from their third
quarter Statement of Cash Flows. They actually generated
positive cash flow from operations. That is not to say that
the stock is not overpriced.
<TABLE>
<CAPTION>
Nine Months Ended June 30,
2000 1999
----------------------- ----------------------
<S> <C> <C>
OPERATING ACTIVITIES:
Net loss $(453,433) $(19,421)
Adjustments to reconcile net loss to net cash provided by operating
activities:
In-process research and development 12,750 -
Depreciation and amortization 4,680 927
Amortization of stock-based compensation 9,958 9,330
Amortization of goodwill and other intangibles 388,679 -
Non-cash warrant expense 13,596 20
Changes in operating assets and liabilities:
Accounts receivable (29,738) (3,827)
Prepaid expenses and other assets (9,114) (469)
Accounts payable 4,884 226
Accrued compensation and related liabilities 32,454 2,787
Accrued liabilities 15,317 2,850
Deferred revenue 97,557 21,292
----------------------- ----------------------
Net cash provided by operating activities 87,590 |
