Biffpincus,
Thanks for the news today. GMGC is definitely in the mode of putting up or shutting down. I personally believe that GMGC has the technology to accomplish what it has set out to achieve. The problem right now is that GMGC needs to start producing.
There are many companies that are developing technologies that are very similar to GMGC and at a lower cost (for the consumer). This could present a problem for GMGC.
On the other hand, GMGC has very good partnerships in Intuit, QWST, Wirelessknowledge, and MSFT (and possible international relationships). One needs to remember that GMGC has a different market than a ASR or simple TTS company.
If what Markman says is true, then the second half of 1999 will prove to be very fruitful for all investors. But, if GMGC can't get the financing within the next few months, then watch out. GMGC will run out of money by the end of June. Expect a minimum of $15 million expenses (average) for the next 4 qtrs. GMGC will need about $60 million for this calendar year to survive. Subtract the current $30 million in short term investments, then one will realize that GMGC will need another $30 million to survive the year. If GMGC can produce subtantial revenues in the second half of 1999 and break even by the end of this year, then maybe GMGC won't need such a great cash infusion.
Fortunately or unfortunately, GMGC is not able to tell its investors exactly what is going on. I guess it is a doubled edge sword. Personally, I can't believe that GMGC will go broke with its current partners. Why would Intuit, WK, MSFT, and QWST partner with a "dying" company. Also, Markman did mention in the CC something about more than one internet partner (possible examples are AOL, NSCP, XCIT, ATHM, etc) and he also mentioned something about not letting the company run out of cash. Markman seemed very adament about not running out of cash.
I will stop rambling now, so take care.
Kurt |
