Services Briefs: SkyNetGlobal, CSC

SkyNetGlobal questioned

Listed Wi-Fi service provider, SkyNetGlobal, has received a “please explain” request from the Australian Stock Exchange after reporting poor results in its quarterly report. The company’s quarterly report reveals income of only $124,000, net negative operating cash flow of $442,000, and only $181,000 left in the kitty. The ASX queried the company as to whether it had enough finances to continue for another quarter. In reply, SkyNetGlobal CEO, Jonathan Soon, said the company expected to receive further cash for the sale of its physical assets. He claimed further marketing of Wi-fi services would increase revenues for the company.

CSC’s mixed report

IT services provider Computer Sciences Corporation. (CSC) reported significantly higher profits for its 2003 third fiscal quarter, but its revenue dropped. CSC had net income of $US105.7 million, up from 2002’s third fiscal quarter when it reported a net income of $US87.1 million. However, revenue slid 3.5 per cent to $US2.79 billion in the quarter ending December 27, 2002.

Problems but show goes on

IT trade show company Key3Media Group has filed for Chapter 11 bankruptcy protection as it undergoes financial reorganisation. However, all of its conferences and shows, including Comdex Fall 2003, will proceed this year as planned. The company said its reorganisation plan would allow it to reduce its debt by 87 per cent from about $US372 million to $US50 million, while eliminating all of its existing preferred stock and common equity. The plan would cut the company’s annual interest expenses from about $US38 million to $US3.4 million. The company said it had run into financial difficulties because of the downturn in the tech economy and the aftershocks from the 9/11 terrorist attacks. Private equity fund company Thomas Weisel Capital Partners is providing Key3Media with $US30 million in debtor-in-possession financing.