- 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.
No mercy for Velti following Q2 report; RBC cuts to Underperform
Aug 21 2013, 13:35 ET