Notice to SI Members and Guests
Many of you have asked questions on the boards and through private messages to me about the future of Silicon Investor as it relates to INSP's stock price. I can't comment about these matters, so I asked InfoSpace's PR and legal teams to draft something on management's behalf that I could post. Here goes:
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To ease concerns and contrary to a number of messages posted, Silicon Investor is not ceasing operations. SI is a valuable community and piece of our Wireline network of Web sites.
Yes, recently, SI’s parent company, InfoSpace, Inc., did receive a notice from the Nasdaq, in regard to bid price deficiency, as have many companies affected by the negative stock market conditions.
In accordance with Nasdaq rules regarding minimum bid prices, InfoSpace has 90 days (until Oct. 1) to regain compliance with its stock trading above $1 for 10 consecutive trading days. The Company has various tools at its disposal to address this issue and the Board of Directors is currently evaluating options and will respond in the near term.
It is important to note, that at the end of the first quarter 2002, InfoSpace had cash, investments, and a payroll tax receivable totaling $289 million. In addition, InfoSpace had investments in private and public securities of $31 million and NO debt.
Finally, InfoSpace is a Company, despite challenges, in a strong position. For example, InfoSpace is well diversified with three distinct business units: Wireline, Merchant and Wireless. For the first quarter of 2002, InfoSpace announced its Merchant and Wireline Business Units were profitable on a pro forma basis. These two business units accounted for approximately 80 percent of first quarter revenue. Also, for the first quarter of 2002, InfoSpace announced growth in key metrics across all three business units.
I hope this information is helpful.
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Thanks to everyone for your continued support of Silicon Investor.
Have a good weekend,
John Busby |
