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Technology Stocks : StorageNetworks, Inc. (STOR) -- Ignore unavailable to you. Want to Upgrade?

To: Crossy who wrote (181)	7/31/2003 6:08:23 PM
From: Glenn Petersen	Read Replies (1) \| Respond to of 187

StorageNetworks to liquidate, fires most workers Thursday July 31, 11:20 am ET biz.yahoo.com NEW YORK, July 31 (Reuters) - StorageNetworks Inc. (NasdaqNM:STOR - News), the data storage software maker, said on Thursday that it was liquidating its operations, firing nearly all its workers and added that its chief executive was leaving after a failed plan to sell itself. StorageNetworks had 60 employees as of June 30 when it announced a 35 percent cut in its work force related to exiting the managed services business. The company was not immediately available for comment on the exact number of people dismissed. Storageworks shares rose following the news by 14 percent, or 18 cents, to $1.46 on Nasdaq. The company said in a statement that it terminated all employees with the exception of a small transition team, adding that CEO Paul Flanagan was leaving, effective immediately. StorageNetworks rode the wave of technology buying during the 1990s as companies built out the Internet and needed more data storage equipment. The stock was worth as much as $154 before the dot-com bubble burst and companies slashed their technology budgets amid overcapacity. The Waltham, Massachusettes company had hired investment bankers earlier this year to explore options to sell the company or to acquire other companies or technologies. But it said takeover offers it had received were not high enough and that it was unable to find any companies to acquire. StorageWorks said it would have taken years for it to create a meaningful return to investors as an independent company because of the costs of development. StorageNetworks estimated it would be able to distribute about $1.60 to $1.70 per share to its stockholders in a liquidation.