|
Broad IP Riding Off Into The Sunset |
|
|
|
Written by Adam Gosling
|
|
Friday, 08 September 2006 |
It looks like Broad Investments has failed to raise
additional capital to fund the further running of its VoIP start-up Broad IP. As
a consequence the Board has had management take the axe to the fledgling broadband
phone company.
The Board of Broad Investments told the ASX today that it
has moved to protect it profitable mobile phone application and content
businesses from the cash draining experiment in IP Telephony it made earlier
this year.
Just over a week ago the Board had a price query on its
plunging stock price from the Stock Exchange and responded with a
statement that it didn't really know why. Maybe it was something to do with
the fact that the Broad IP deivision was $100,000 a month overweight.
The board has decided there's better money in ringtones and
will go for broke with its MTX (Pocket Portal and Mobile Applications) and Glovebox
(Mobile Content) divisions which "offer the greatest prospect for faster growth
and early cash flow generation," says the latest statement.
The Broad Board says it has taken "prudent steps" and has
moved to "reduce cash burn" by changing its business plan and strategy which it
did only five months ago when it launched the Broad IP venture.
Now it is "scaling down under-performing operations". The
statement isn't very precise and at 5pm on a Friday I'm afraid I'm not going to
call them, but the statement says
"The Board has therefore agreed that henceforth it will
focus its resources more into MTX and Glovebox and reduce its direct activities
in the more competitive telephony (Voice and Data) market through outsourcing
and other strategies, including discontinuing services that absorb excessive
cash," says the statement.
"Following its decision, the Board has in the last two weeks
taken stops to considerably reduce expenditure through contractor and staff
reduction in areas associated with telephony and data service and the scaling
down or suspension of some offering which will save more than $100,000 per
month.
"Further and most importantly, the restructuring of the
under-performing subsidiaries will quarantine or reduce any continueing
exposure or liabilities to BRO [the parent company]," it says.
Related news items Newer news items
Older news items
|
|
|
|
