Headline Feeds
Beyond.com (Nasdaq: BYND) fell 3/32 to 3/8 Tuesday after Prudential Securities downgraded the issue to sell from hold, a rare occurrence in the ratings game.
The downgrade reflects concerns about the company's ability to gain financing, Prudential said in a research note. A recent commitment for a US$40 million cash infusion may not be available to the company if its stock price remains at current levels, and if no alternative funding is found, the company may run out of cash in the first quarter of next year, the firm warned.
Beyond.com has said it expects to turn a profit in the first quarter of 2002.
On October 31st, Beyond.com said it had received a commitment from an unidentified private investment fund to provide as much as $40 million in financing to help it meet capital expenditures and working capital needs. The cost of the financing is to be determined based on the weighted average price of the company's shares.
The Santa Clara, California-based company said the one-year agreement could be extended at its own discretion. Drawdowns under the financing agreement are subject to conditions including the filing of a registration statement with the U.S. Securities and Exchange Commission, the company said.
Beyond.com reported third-quarter revenue of $29.1 million, as its loss before items narrowed to $9.9 million, or 26 cents per share, from $11.1 million, or 29 cents, in the year-earlier quarter. President and chief executive officer Ronald Smith attributed the improvement to the company's "transitioning" to e-commerce services from e-tailing.
Beyond.com builds and manages Web sites for businesses.
