Managed infrastructure provider and private-label ASP Interliant Inc. will run out of cash by the end of September, the Purchase, N.Y. company reported yesterday. The announcement is based on a recently revised business plan, the company said in a statement.
Interliant blamed the shortfall in cash resources on the “continued weakening of market conditions” since it filed its Form 10-Q for the first quarter of 2002. The company said another reason for its current financial condition is the delay in the sale of one of its business divisions. Assuming a sale still occurs, Interliant reports that the proceeds will be significantly lower than assumed and are not likely to be received by July 31.
A third reason, the company said in its statement, is a delay in the receipt of contingent consideration from a 2001 asset sale, a substantial portion of which the Company expected to receive by June 30, 2002. Interliant said it expects to receive all of the contingent consideration it is due from this sale. However, the company said there is no assurance that it will equal the previously anticipated amount.
On July 10, a Nasdaq Listing Qualifications Panel denied Interliant’s appeal was for continued inclusion of the Company’s securities on The Nasdaq National Market.
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