NetObjects, a Web site building applications developer, has announced financial results for its third quarter of fiscal 2001 and issued an update on its financial condition.
As of the conclusion of the third quarter of its 2001 fiscal year on June 30, the current liabilities of NetObjects, totaling US $7.8 million, exceeded its current assets, totaling $6.6 million. Its cash and cash equivalents totaled $4.4 million. While management has taken steps to decrease expenses, NetObjects does not have sufficient cash to continue operation through the end of its fiscal year on Sept. 30.
The company has retained Broadview International to explore strategic alternatives, including the sale of NetObjects or a significant investment by a third party. While that effort continues, based on the company’s limited amount of cash, management and the board of directors have determined that it is necessary to consider other extraordinary measures to preserve corporate assets, the company said in a statement.
NetObjects reported revenues from continuing operations for the third quarter of fiscal 2001 of $1.1 million compared to revenues of $7.9 million for the same period last year. Excluding non-cash charges for amortization of goodwill, stock based compensation, the cost from termination of prepaid service offerings, the loss on impaired assets and terminated investments, the loss from operations of the discontinued Enterprise division and the write-down of leasehold improvements, the net loss for the third quarter of fiscal 2001 was $5.8 million or 18 cents per share, compared to a net loss of $4.9 million or 16 cents per share for the same period last year.
Including charges for amortization of goodwill, stock based compensation, the cost from termination of prepaid service offerings, the loss on impaired assets and terminated investments, the loss from operations of the discontinued Enterprise division and the write-down of leasehold improvements, net loss for the third quarter of fiscal 2001 was $9.2 million or 29 cents per share, compared to a net loss of $7.4 million or 24 cents per share for the same period last year.
NetObjects Matrix is a Java-based technology developed for service providers that enables their small business users to integrate third party services into a unified Web site creation architecture.
As reported June 12 by MacCentral, NetObjects executive Vice President Mark Patton noted that his company has seen an increase in demand for Mac-compatible technology.
“We have great synergy with Apple, as the Mac appeals to so many small businesses, and NetObjects solutions are developed with the small business end-user in mind,” said Patton.
NetObjects Matrix incorporates a Web-based graphical site builder, and supports modular output technology that simplifies the user’s ability to create and distribute Web sites that can be re-purposed for Web browsers and wireless access devices.