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Further background information should include:
"Omega embarked on a very expensive and aggressive advertising campaign to
tout their new Prosuite 2000 line of products spending millions of dollars
in the process. Their marketing department was unaware of the technical
problems with the product and due to the dwindling stock price, all of their
top developers "jumped ship" at a time when they were needed the most...to
clean-up the aftermath of a very complex application rewrite. As a result,
with a terribly buggy product the company has lost acceptance as a viable
player in the trading systems arena and because the conversion rate from the
older 4.0 version of the product was abysmal, marketshare continues to
decline. Company management was unavailable for comment since the phones on
their respective yachts were disconnected and the gates to their mansions
were kept under armed-guard....in fear of reprisal by violent daytrader
types who had lost millions trying to get their software to work"
Can you say "poor management" ??
> -----Original Message-----
> From: Kent Rollins [mailto:kentr@xxxxxxxxxxxxxx]
> Sent: Thursday, May 18, 2000 8:29 PM
> To: OmegaList
> Subject: Re: Quarterly Report (SEC form 10-Q)
>
>
> In case you didn't bother to read all of Mark's post of the Omega
> 10-Q, here
> is the paragraph I found most interesting. It looks like all those people
> who think Omega will be discontinuing support of TS2K may be
> right, but for
> different reasons.
>
> Kent
>
>
> LIQUIDITY AND CAPITAL RESOURCES
> The Company currently anticipates that its available cash
> resources and cash
> flows from operations will be sufficient to meet its presently anticipated
> working capital and capital expenditure requirements for approximately the
> next 12 months. However, the Company is experiencing a period of
> net losses
> which is expected to continue at least through the year 2000. Further, as
> the Company transitions to its new business model, it may need to raise
> additional funds in order to execute that transition, support more rapid
> expansion, develop new or enhanced services and products, respond to
> competitive pressures, to acquire complementary businesses or technologies
> and/or take advantage of unanticipated opportunities. The Company has also
> recently substantially increased its rental obligations under
> real property,
> facilities and equipment leases. The Company's future liquidity
> and capital
> requirements will depend upon numerous factors, including the
> period of time
> it takes the Company to execute its transition to it's new business model,
> and customer acceptance thereof, costs and timing of expansion of research
> and development and marketing efforts and the success of such efforts, the
> success of the Company's existing and new product and service
> offerings, and
> competing technological and market developments. The Company's
> forecast of
> the period of time through which its financial resources will be
> adequate to
> support its operations involves risks and uncertainties, and
> actual results
> could vary. The factors described earlier in this paragraph, as well as
> other factors, will impact the Company's future capital
> requirements and the
> adequacy of its available funds. If additional funds are raised
> through the
> issuance of equity securities, the percentage ownership of the
> shareholders
> of the Company will be reduced, shareholders may experience additional
> dilution in net book value per share or such equity securities may have
> rights, preferences or privileges senior to those of the holders of the
> Company's common stock.
>
> There can be no assurance that additional financing (debt or equity), if
> required, will be available when needed on terms favorable to the Company,
> if at all. If adequate funds are not available on acceptable terms, the
> Company may be unable to complete effectively its transition to its new
> business model, develop or enhance its services and products,
> take advantage
> of future opportunities or respond to competitive pressures, any of which
> could have a material adverse effect on the Company's business, financial
> condition, results of operations and prospects.
>
>
>
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