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Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: AllansAlias who wrote (19322)	9/18/2000 3:54:27 PM
From: Lucretius	Read Replies (1) \| Respond to of 436258

ROFL!!!

To: AllansAlias who wrote (19322)	9/18/2000 4:24:46 PM
From: Ken98	Respond to of 436258

The ICGX blow-up looks like a gut-shot for the optical / new-era telcos: <<Standby. ICG Communications (ICGX:Nasdaq - news) is having technical difficulties. Today, the company warned that its second half would fall far short of expectations, blaming network outages and other technical glitches. The company also added that it is in need of additional funding and was seeking help to explore strategic options. The bottom line: ICG said combined third- and fourth-quarter revenue would come in at $300 million, well under its $400-million estimate. Hopes of second-half profitability are also gone. The company expects a $25 million loss before interest, taxes, depreciation and amortization, much lower than its estimated $60 million profit. 2001 will also prove to be quite an odyssey for ICG. Revenues have been slashed to between $700 million and $800 million from the predicted $1.4 billion. And, to make matters worse, the lowered expectations puts the company in breach of certain parts of its $200 million secured bank credit facility.>> As expected, ICG can add stock price difficulties to its technical ones. The company was last off 52.8% to $1.88. Other companies in the sector were also lower. Nextlink (NXLK:Nasdaq - news) fell 0.5% to $27.50 while Intermedia Communications (ICIX:Nasdaq - news) fell 2.2% to $28.25.>> thestreet.com In addition they have come out and said they are reducing next year's capital expenditures by $450-550 million (56-69%). But even to do the REDUCED cap-x they will have to borrow yet even more money (presuming someone will lend it to them). A couple of questions. First, I wonder how many suppliers provided vendor financing? And second, do those vendor's market valuations fully reflect either the financing risk OR the reduced sales? Me thinks they will be needing a couple less crisco routers next year.