RealTime IT News

Circling the Wagons at Outpost.com

With its stock down to 32 cents a share at market-open today, Internet computer products retailer Cyberian Outpost Inc. issued a statement quoting the chairman as saying the company "has decided to explore all available options at this time."

Shortly after the opening bell the stock was down to 20 cents a share as the Kent, Conn.-based company reported a fourth quarter pro forma loss of $9.5 million or 30 cents a share on higher revenues of $120.9 million. The results actually beat the consensus of analysts, who were expecting a loss of 33 cents a share.

"Current market conditions have made it difficult to secure the required equity and working capital financing we need, said Darryl Peck, chairman of Outpost.com. "Therefore, we intend to meet with our creditors to discuss payment options."

The company also said it would take a number of unspecified cost reduction actions.

Although Outpost has recorded steady increases in revenues since going public in 1998, it has never had a profitable quarter.

For the fiscal year ended Feb. 28, 2001, Outpost reported net sales of $355.2 million, up 86.6 percent from the $190.3 million of net sales for the prior fiscal year. Pro forma net loss excluding amortization of goodwill was $29.3 million and 97 cents per share.

Outpost said that "market conditions and the unpredictable economic environment preclude the company from making meaningful estimates for fiscal 2002 at this time."