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Technology Stocks : Source Media SRCM -- Ignore unavailable to you. Want to Upgrade?

To: Smilodon who wrote (1577)	11/12/1998 8:10:00 PM
From: Pluvia	Respond to of 3015

SRCM GIVES their product to Cable Companies - and still can't sign up any Business!!! Plus SRCM is running out of cash fast... What is this company going to do - it is bleeding cash like a stuck pig? SRCM is bleeding to death - $3mm cash burn per quarter, no cash flow, only $13.6mm of operating capital left as of Sept. 31... The bottom line, SRCM has not a chance in freaking hell of ever making enough money to pay the interest on their outstanding debt - not to mention the principal. The revenue increase was another one of SRCM's typical spin jobs. They are comparing "cash revenue" - not total revenue, and they fail to mention the increase was due to the $44.6 mm purchase of Brite & VNN. At this rate SRCM might be able to increase their total revenue from last year's $18.4 million to maybe $25 million this year. If so they paid $44.6 million to be able to increase their revenue $5.6 million. What a joke. SRCM's revenue for 1998 Q1 was $5.2mm, Q2 was $5.8mm, Q3 was $6.3mm. This is certainly not an impressive increase considering they paid $44.6mm to buy this revenue. Furthermore, this amunt of revenue will never come close to paying the interest on the outstanding $100mm debt. Keep in mind this is after SRCM paid $44.6mm for Brite and VNN which the clowns at SRCM said would make them the market leader, eliminate competition in the business and produce them $14 million in cash flow. Well they don't have $14mm in cash flow, instead they still have a $3mm cash burn rate - (100k less than last Q? ROFL big deal). And now instead of Insight's deployment making SRCM money, we find out Insight will not pay them anything!!! Think about this for a second... SRCM is giving away this ridiculous Interactive Channel to the cable companies - and they still can't get cable companies to sign up to take their crappy product!!!! How funny is that? ROFL!!!!!!!!!! SRCM can't even give their product away!!!!!!!!!! Meanwhile, Worldgate is rollingout in 5 NEW markets in the next 90 days. SRCM is a joke - they aren't even in this game, merely a sideline observer. This pig company dies, and it's management will be back to selling used 1981 AMC Pacers. All comments IMO Cheers Steve