Burst.com to Cut Most of Staff, Third-Quarter Loss Narrows
Burst.com
(BRST)
posted a third-quarter loss that narrowed from a year ago, but the company disclosed plans to cut most of its work force in a bid to lower its cash burn rate.
The company, which develops technology for electronically delivering audio and video programming over broadband networks, reported a loss for the third quarter of $4.7 million, or 24 cents a share, on revenue of $94,891. The company lost $4.9 million, or 53 cents a share, for the same period a year ago.
Burst.com, San Francisco, said its "inability to fully execute on the business plan at this time, coupled with current market conditions, has impaired the company's ability to raise financing and generate significant near-term revenue." The company has reduced its projected burn rate to about $500,000 a month, primarily by closing six sales offices and reducing its overall headcount to 18 from 95. The company also received equity financing from
SBC Communications
TheStreet Recommends
(SBC)
, and said it is holding talks with other investors for near- and long-term financing.
As of Sept. 30, the company had about $3.2 million in cash on hand. By Nov. 15, that figure had come down to $200,000.
Earlier, trading was halted in Burst.com at 50 cents in
Nasdaq
activity. The 52-week high is $19.63. Shares of Burst.com recently opened for trading at 47 cents.
