8/14/2001 7:18:00 PM
REDWOOD CITY, Calif., Aug 14 (Reuters) - Software maker NetObjects Inc. (NETO on Tuesday warned that, despite taking steps to reduce costs, it does not have sufficient cash to operate through Sept. 30.
The Redwood City, California-based maker of software that helps users build and manage Web sites said that it had hired New Jersey-based merger and acquisition adviser Broadview International to explore strategic alternatives, including a sale or significant investment by a third party.
The company -- which is 48 percent owned by computer and services giant International Business Machines Corp. (-- on Tuesday said it had $4.4 million in cash and cash equivalents remaining at the end of its fiscal third quarter ended June 30. It also said that current liabilities -- $7.8 million -- exceeded current assets of $6.6 million.
"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 officials could not be immediately reached for comment and Broadview declined through a spokeswoman.
REVENUES FALL, LOSS GROWS
NetObjects also reported that its third-quarter revenues from continuing operations fell to $1.1 million from $7.9 million a year ago.
The company's year-over-year net loss widened to $9.2 million, or 29 cents a share, from a net loss of $7.4 million, or 24 cents, last year.
Excluding noncash charges, the company reported a loss of $5.8 million, or 18 cents a share, compared with a loss of $4.9 million, or 16 cents, a year earlier.
NetObjects shares, which hit a high of $45.69 last March,were at 95 cents before trading was halted for the company's announcement. When the stock was released for trade, its price fell as low as 30 cents a share in after-hours trade on Instinet.
The Nasdaq National Market is currently reviewing the company's appeal to keep its stock listed for trade after NetObjects shares fell below the $1 a share minimum bid price requirement.
REUTERS
Rtr 19:18 08-14-01
