The company, based in Redwood City, Calif., cited the slackening online advertising for most of its woes, including lower revenues, greater operating losses and more rapid use of cash than previously forecast for the rest of the year. It also cut 250 jobs this year.
To conserve cash and raise additional funds, the company plans to take several steps: adoption of a revised operating plan with lower expenses; a planned agreement with AT&T in which the company would provide [email protected] with $75 million to $85 million to restructure its backbone fiber agreement and create a joint initiative to maintain and improve current network performance levels; negotiation of additional debt and/or equity financing from third parties; and possible restructuring or selling of its media operations that do not directly support its broadband strategy.
[email protected] plans to release its final first-quarter results and its outlook for future periods on April 23. -- Adrienne Mand
Copyright April 2001, Crain Communications Inc.