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
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
Commentary
IT Salary Report 2020: Get Paid What You Are Worth
Jessica Davis, Senior Editor, Enterprise Apps,  2/12/2020
Slideshows
10 Analytics and AI Startups You Should Know About
Cynthia Harvey, Freelance Journalist, InformationWeek,  2/19/2020
News
Fighting the Coronavirus with Analytics and GIS
Jessica Davis, Senior Editor, Enterprise Apps,  2/3/2020
Register for InformationWeek Newsletters
Video
Current Issue
IT Careers: Tech Drives Constant Change
Advances in information technology and management concepts mean that IT professionals must update their skill sets, even their career goals on an almost yearly basis. In this IT Trend Report, experts share advice on how IT pros can keep up with this every-changing job market. Read it today!
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