LinuxWorld: European dot-coms strugglingJun 13, 2000, 12:26 (0 Talkback[s])
(Other stories by Bruce Tober)
"...The Boodotcom syndrome is set to hit hard for many of the dot-coms in the current economic environment, according to Colin Tenwick, Red Hat's vice president for European, Middle Eastern, and African operations. In an interview with LinuxWorld at the Linux Expo 2000 in London, Tenwick reflected on that formerly high-flying UK dot-com's recent bankruptcy. "I don't think people should underestimate the impact that will have," he said."
"Tenwick said Boodotcom's stock situation is very similar to that of European high-tech companies' stocks generally. "If you look at our chart, you could match 3,000 other companies onto that moment. We don't think we're any different in that sense, in terms of what we've stated. We publicly stated to the market that we're going to double our revenues year on year and that we'll make profits Q2 and 3 next year, and we feel pretty confident we'll meet those promises."
"But, on a more positive note, Tenwick said that it's very important to Red Hat's health in Europe that it "went through a secondary offering at the beginning of this year. We raised over $350 million in cash. So we have a very strong balance sheet." He explained that doing so prevented Red Hat from being caught up in the Boodotcom syndrome."