Ventro Reports $451 Million 4Q Loss - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

Ventro Reports $451 Million 4Q Loss

E-marketplace pioneer Ventro Corp., which once ran market-leading trading exchanges like Chemdex and Promedix, continued a financial slide last quarter that has culminated in large losses for fiscal year 2000 and the resignations of the company's chief operating officer, its chief financial officer, and its VP of marketing.

For the fourth quarter ended Dec. 31, Ventro reported net losses of $451.6 million compared with $15.3 million for the same quarter the previous year. For the fiscal year, Ventro reported losses of $618.1 million compared with losses of $48.6 million in 1999. Ventro blamed its fourth-quarter losses partly on $382.5 million in charges for the discontinuation of operations of Chemdex and Promedix, termination of 235 employees, restructuring charges, and the cost of writing off certain assets. Chief operating officer Robin Abrams, CFO James Stewart, and VP Martha Greer have notified the company they intend to leave by the end of the first quarter 2001.

David Perry, CEO and president, says the costs associated with restructuring the company as a marketplace services provider were less than the company anticipated in December and that left the company with enough cash to retire outstanding convertible debt.

The company says it soon will file documents with the Securities and Exchange Commission to enable it to begin repurchasing $250 million in 6% convertible notes issued in March 2000. The purchase price for the notes will be $270 in cash per $1,000 principal amount, plus accrued and unpaid interest. The company is repurchasing the notes to reduce its annual interest expense and eliminate the need to repay or refinance the debt when it matures in 2007.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
The State of IT & Cybersecurity Operations 2020
The State of IT & Cybersecurity Operations 2020
Download this report from InformationWeek, in partnership with Dark Reading, to learn more about how today's IT operations teams work with cybersecurity operations, what technologies they are using, and how they communicate and share responsibility--or create risk by failing to do so. Get it now!
Slideshows
10 Ways to Prepare Your IT Organization for the Next Crisis
Cynthia Harvey, Freelance Journalist, InformationWeek,  5/20/2020
News
IT Spending Forecast: Unfortunately, It's Going to Hurt
Jessica Davis, Senior Editor, Enterprise Apps,  5/15/2020
Commentary
Helping Developers and Enterprises Answer the Skills Dilemma
Joao-Pierre S. Ruth, Senior Writer,  5/19/2020
Register for InformationWeek Newsletters
Video
Current Issue
Key to Cloud Success: The Right Management
This IT Trend highlights some of the steps IT teams can take to keep their cloud environments running in a safe, efficient manner.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll