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Technology Stocks : AUTOHOME, Inc -- Ignore unavailable to you. Want to Upgrade?

To: ld5030 who wrote (26523)	11/27/2000 6:52:48 PM
From: E. Davies	Respond to of 29970

Do you see any threat of this company going bankrupt? Ok- heres my read of the sec filings: As of Sept 30 ATHM had $332 million in cash and short term investments. For the 9 months ending Sep 30 ATHM had a net cash loss from operations of just about $15 million. At that pace ATHM has enough cash to continue operations until 2016. I'd say no worries, but I make no claims to be an expert in reading financial statements. Eric

To: ld5030 who wrote (26523)	11/27/2000 7:19:32 PM
From: E. Davies	Read Replies (1) \| Respond to of 29970

Also, should we be worried at all that T is suspending shipment of broadband support equipment? This one is disturbing to me. I would not be surprised if this has been a factor in the oversized selloff we've seen the last couple of weeks. To me it says that T is going to slow down the pace of upgrading homes for broadband. This will impact ATHM's subscriber growth eventually, since adding subscribers in newly upgraded areas is a lot easier. Eric

To: ld5030 who wrote (26523)	11/28/2000 2:18:42 PM
From: gpowell	Read Replies (1) \| Respond to of 29970

No, I don’t think they’re in danger of going bankrupt. They are burning cash however. From their 10Q: Liquidity and Capital Resources Liquidity Since inception, we have financed our operations primarily through a combination of private and public sales of equity and convertible debt securities and capital lease obligations. As of September 30, 2000, our principal source of liquidity was approximately $332.9 million of cash, cash equivalents and short-term investments, compared with $525.2 million as of December 31, 1999. Our short-term investments consist predominantly of debt instruments that mature in less than one year, are highly liquid and have a high-quality investment rating. We intend to make our short-term investments available, if and when needed, for operating purposes. Our cash and cash equivalents decreased by 32% from $224.5 million as of December 31, 1999 to $152.5 million as of September 30, 2000. This decrease resulted from cash used in operating activities of $15 million, cash used in investing activities of $90.5 million and cash provided by financing activities of $33.4 million during the nine months ended September 30, 2000. For the nine months ended September 30, 1999, cash provided by operating activities was $82 million, cash used in investment activities was $238.3 million and cash provided by financing activities was $17.8 million. For the nine months ended September 30, 2000, cash used in operating activities of $15 million included a net loss of $2,013.5 million offset by non-cash charges of $2,007.1 million related to depreciation and amortization of distribution agreements, acquisition-related amounts, deferred compensation and other amounts, and a net decrease of $8.6 million in operating assets and liabilities utilizing cash. Cash used in investing activities of $90.5 million included net purchases of equipment of $110.4 million, payments under our backbone agreement of $46 million, investment in joint ventures of $54 million and cash paid in business combinations net of cash received of $6.4 million, offset by net sales and maturities of short-term investments of $120.3 million and net sales of other investments of $6 million. Cash provided by financing activities of $33.4 million included net proceeds from the issuance of common stock of $76.6 million offset by payments under capital leases of $43.2 million. During the last CC, ATHM stated that they would use an additional $110 mil in cash in q4 2000. Depending on how the excite@chelllo ipo goes, there is some danger that they will run out of cash in 2001, although Bell has denied this. If T’s delay of equipment purchases were to materially affect ATHM’s results, I would expect ATHM to have made an announcement by now. We all know how forthright ATHM has been in the past about materially significant events.