To: John J H Kim who wrote (23705 ) 10/22/1999 1:34:00 PM From: AlienTech Read Replies (1) | Respond to of 43080
HOLLY RAMPARAMA!!!!!!!! *DJ Ramp Networks Off 45%; 3Q Loss Wider Than Expected (MORE) DOW JONES NEWS 10-22-99 10:58 AM *DJ Ramp Networks CFO:Hiked Spending To Widen Future Losses (MORE) DOW JONES NEWS 10-22-99 12:45 PM =DJ Ramp Networks CFO -2: Co. Has $43M To Spend Over 2 Years By Scott Eden NEW YORK (Dow Jones)--Ramp Networks Inc. (RAMP) will increase spending "significantly" in a bid to exploit the burgeoning market for high-speed Internet connectors, in the process widening its losses and delaying its first profit, Chief Financial Officer Terry Gibson said. Ramp, Santa Clara, Calif., disclosed the information Friday to investors and Wall Street analysts during a conference call to discuss the third-quarter results released late Thursday. The news didn't have the intended result: Combined with a slightly worse-than-expected financial performance in the latest period, the prospect of wider losses in quarters to come was enough to spook investors and drive Ramp stock as low as 11 Friday, equal to its June initial offering price. Recently, the shares traded at 11 1/8, down 10 3/8, or 48%. Gibson wouldn't peg a specific dollar amount on the spending or provide specific guidance, but said the company has about $43 million in cash and saleable securities in its warchest, which Ramp plans to spend over the next two years. Analysts polled by First Call/Thomson Financial currently forecast per-share losses of 9 cents for the fourth quarter, $1.16 1999 and 14 cents all of 2000. In an interview with Dow Jones Newswires Friday, Gibson said the money will go to research and development and sales and marketing. "We're making a large additional investment in DSL technology," he said, and as a result, "will increase our operating spending and our losses in the near term." Gibson was referring to digital subscriber lines, or DSL, a "broadband" technology designed to deliver speedier Internet connections. His company wants to quicken its development of the connector boxes that bridge computers with the Web, a fiercely competitive business. (MORE) DOW JONES NEWS 10-22-99 01:26 PM