To: DAVID who wrote (12196 ) 7/28/1998 12:03:00 AM From: AlienTech Respond to
YIPPIE CYCH BEATS ESTIMATES BY 10 CENTS! WATCH THIS SUCKER NOW FLY!CYCBERCASH (CYCH) 12 5/16 -9/16. Never has "beating by 10 cents" had such a hollow ring. After the close on Monday, Internet and secure-electronics payment company Cybercash reported a second quarter loss of $0.68 per share. This is 10 cents "better" than the First Call consensus estimate from 4 analysts calling for a loss of $0.78 per share, but it is hard to draw much cheer from that. This is the eleventh straight quarter that CYCH has lost between $0.59 and $0.86 per share . This quarter's loss also exceeds last year's $0.58 loss, so things aren't really getting any better. In fact, the lower than expected loss per share may be because there are 31% more shares this year. (Losses get diluted just as profits do with more shares.) In actual dollar terms, CYCH lost $9.6 million in the quarter compared to $6.3 million same quarter last year. That is significant because as of June 30 they showed only $5.7 million in cash and equivalents and $8.1 million in other assets. That would last only about 5 months at the current burn rate. So, the press release also noted that "In an important sign of the continued faith of investors in the CyberCash vision, two weeks ago the Company raised $15 million in a private placement." They will probably need it because profitability is not in sight as the losses are mounting. With the extra financing, CYCH can last 10 months at the current loss rate unless they raise yet more capital. Revenues did surge 208% but that is because of the acquisition of ICVerify. CYCH stock has occasionally spiked up as an Internet play, or as a takeover candidate, but there is still nothing in the financials to get excited about. This was once a company that seemed to have an important future in the Internet world, but it has yet to follow through on its promise. CYCH will need to raise more money or find the right partner.
