- Velti's (VELT -55%) market cap has fallen to just $30M after the company badly missed Q2 estimates, announced a $111M write-down, and backtracked on a promise to be cash flow positive this year. Needless to say, investors are questioning the mobile ad agency's ability to survive.
- On the CC, CFO Jeffrey Ross effectively confirmed VentureBeat's deliquent payment reports by stating the Q2 miss was largely due to a "failure to make timely payments to preempt publishers on our Mobclix ad exchange business, which resulted in a substantial decline in that business."
- He added Velti hasn't been able to "provide sufficient liquidity" for Mobclix, and thus expects it to continue declining.
- Ross also stated Velti "[remains] in violation of [its] debt covenants with HSBC," but is "in close dialogue with the bank" regarding liquidity needs.
- COO Mari Baker suggested Velti has "identified areas" where it can make additional job cuts (previous), as well as areas to make new investments.
at MarketWatch.com (Mar 12, 2013)