IBM Lends Egghead a Hand
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Two days after undertaking drastic cost-cutting measures, which included the layoffs of 77 people, Egghead.com received a $20 million line from IBM Global Financing.
To say the least, the Menlo Park, Calif.-based etailer is pleased to receive the cash infusion. "Based on our cash position at the beginning of the year and this new financing, we believe we will have sufficient funds to take us through to profitability," said John Labbett, executive vice president and CFO.
"In addition, we are continuing to explore other financing options in order to maintain a solid cash balance."
The company has had its share of troubles of late. In February, revenue expectations for the coming year were lowered to be on par with 2000. Meanwhile, in December, a hacking attack had the potential to expose 3.7 million customer accounts.
The financial agreement adds to IBM's portfolio, noted William Doscas, vice president, market and sales operations, IBM Global Financing. "This secured financing line agreement adds to our broad Commercial Financing portfolio, which provides flexible financing for inventory, accounts receivable and acquisitions," he said.
At press time, Egghead.com
was trading at 7/8, up by