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Loudcloud in Trouble? As a reminder that the independent MSPs are still very fragile, Loudcloud last week suspended it's revenue guidance when a single major client, Atriax, closed up shop. Sounds like time to take a look at Loudcloud's cash flow.
As of the end of their quarter on January 31, the company had only enough cash to make it to May 25. (That's $66m cash and a $52m burn rate per quarter or a whopping $573,000 per day. Operating expenses alone are nearly $230,000 per day.) And that's if Loudlcloud doesn't pay its bills and nothing goes wrong, which obviously isn't the case when a major customer goes away. The moral of this yet-unfinished story is to make sure your vendors are profitable.
Posted Monday, April 08, 2002 11:19:04 AM 
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