Future Looks Uncertain at inChorus

In revealing regulatory filings earlier this week, e-mail marketer inChorus.com said that it has cut twelve non-executive positions — raising questions about the company’s near-term viability.

The Santa Clara, Calif.-based firm, which creates tools for marketers to embed animation and sound into e-mail messages, cited a “continued severe capital shortfall” as the reasons behind the cuts.

Now, six executives remain at inChorus. And according to the documents, which were filed with the SEC on Dec. 6, “…there can be no assurance that these executives will remain with the company.”

The recent staff cuts conclude a series of gradual layoffs of non-executive personnel that began in late October.

In regulatory statements at the time, the company said it had cut nine of its 32 positions to “in order to reduce operating expenses to bring them more in line with revenues.”

The company posted a net loss of $1.8 million in the last quarter, on sales of $286,500.

Revenues weren’t the only worry for the startup. In April 1999, the SEC began an investigation into inChorus, then known as Softlink, Inc., about a series of alleged shareholder violations. The SEC sought to determine whether inChorus made misleading statements regarding projected financial revenues, engaged in inside trading, or neglected to publicly register the sale of securities.

Repeated phone calls to the company and its executives Thursday were not returned by press time.

The company’s client roster included Salon.com, Stanford University, and now-defunct e-commerce play Achoo!. Earlier this year, inChorus inked a deal with USA Global Link to embed into e-mails what it called “Instant Call” technology. E-mail recipients could click on a link to have someone phone them with more information.

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