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Kozmo Shutdown Befuddles Cosmoz

Phone lines, e-mail jammed with investors and shareholders confused by two companies with similar sounding names.

April 13, 2001
By Michael Singer: More stories by this author:

The sudden shut down of New York-based online delivery firm Kozmo is having an unusual effect on one Silicon Valley tech company.

Production at Cosmoz (OTC BB: CMOZ), a technology holding company based in Millbrae Calif., came to a grinding halt Thursday as phones and e-mail boxes were jammed with questions from irate investors and shareholders.

"They wanted to know why we were shutting down all of a sudden," says Cosmoz COO Wing Yu. "Either that or they wanted to know where their groceries were. And no, we don't deliver food or videos."

Yu and other executives spent the better part of the day explaining that there is no connection between Kozmo and Cosmoz. Except that their names sound similar if you say them fast enough.

"I guess people heard the news about Kozmo on the way to work this morning and thought that we were going under," says Yu who admits that Cosmoz has suffered from the dot-com slump, but has no plans of shutting down.

Cosmoz, which builds back-end software for companies like FinancialContent and StreetIQ, told investors last week they were going to break even this quarter.

"And we still believe that the company is on track to meet this quarter's revenue goals, says Yu.

This is not the first time Web-based companies have confused investors with a case of mistaken identity.

After recent troubles at San Francisco-based e-mail software maker Critical Path (Nasdaq: CPTH) Portland, Oregon-based Critical Path Software says they were inundated with hostile calls and e-mail.

"Imagine our shock, our surprise, our stomach-churning indignation when we discovered recently that another company called Critical Path, Inc. was being investigated for fraud and other financial shenanigans," says a statement on the company Web site. "WE ARE NOT THAT CRITICAL PATH."

So until, Kozmo's troubles are cleared up, Yu says his company will have to dispel rumors of a shut down at Cosmoz.

"We're telling callers, 'It's not us. Don't worry we're still here'," says Yu.






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