$15 million invested in Log On America
PROVIDENCE – Log On America’s chief executive officer reported that the company’s treasury had received a $15 million boost as the result of the sale of 909,000 shares of stock recently to several institutional investors, including Marshall Capital Management, Inc., which purchased $7.5 million worth. The stock sold at $16.50 a share, and the sale represents about 10 percent of the company’s 9 million outstanding shares, according to David Paolo, the company’s chief executive. LOA has the option of selling common shares at market value at certain times after June 1 to raise an additional $20 million.
Network Six revenues down for year
WARWICK – Network Six reported year-end revenue of $10,225,676, down 1.7 percent from the previous year, and a net loss of $1,221,615, compared to last year’s net income of $1,061,006. The 1999 figures include a one-time pre-tax charge of $3.1 million related to the company’s settling its long-state suit with the state of Hawaii. Without the charge, the company would have posted net income of $623,117.
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For the fourth quarter, the company’s revenue was $2,411,718, up 6.6 percent from the same period a year ago, with net income of $83,700, compared to net income of $312,607 for the same period last year.
Kenneth C. Kirsch, president and chief executive officer, said revenues were down because, he said, sales and marketing efforts have “taken longer to materialize than expected,” and that many customers had held up on purchases because of Y2K fears.
Forum to explore financing models
PROVIDENCE – The Brown Venture Forum and Rhode Island Technology will spotlight three different financing models for technology-based companies at a joint forum from 6 to 7:30 p.m. at the Barus-Holley Building, Hope and George Streets, in Providence. Participating in the forum will be Patyricia Gagnon, president of TMS, Inc.; Matthew Flanagan, executive vice president of Global Risk Exchange; and Clark Jordan, chief executive officer of Mesa Systems Guild.
Priceline.com to add gas purchases in May
HARTFORD, Conn. — The online service that lets customers name their own price for travel, home mortgages and groceries, now is coming to the aid of motorists feeling the pinch of high gas prices. Priceline.com said it is adding gas purchases beginning May 20. Jay Walker, the company’s co-founder and chairman estimated that most motorists would save 10 cents to 20 cents per gallon.
Walker said the company can offer lower prices because participating gas stations will pay it a few cents per gallon to get new customers. Motorists will be able to buy up to 50 gallons of gas a month using the service. They will choose a per-gallon price on Priceline.com’s affiliated site, WebHouse Club. If the price is accepted, the customer’s credit card will automatically be charged. The person can then drive to a participating gas station and use a special Priceline.com credit card that will complete the purchase. The company said a list of eligible stations around the country would be available in about a month.
Known for its ads with “Star Trek” actor William Shatner, the company has drawn about 4 million customers in two years. Analysts say Priceline is expected to crack $1 billion in revenues this year and turn its first profit in early 2001.
VST Technologies being bought by Florida firm
ACTON – SmartDisk Corp. of Naples, Fla., a maker of adapters for downloading digital photos and music to personal computers has agreed to buy VST Technologies, a closely held company based here. SmartDisk is reportedly paying $84.7 million for VST, a maker of flash-memory readers and storage systems for personal computers and Macintosh systems, Bloomberg News reported. SmartDisk reportedly will pay 1.523 million shares and $16.5 million in cash for VST, and will assume $4.2 million in VST’s debt.
Compromise reached on cell phone towers
BOSTON — After years battling over the location of cell phone towers, environmentalists, industry representatives and a statewide municipal association say they have reached a compromise that would give communities more say while allowing technology to advance. Participating in developing the compromise were the Conservation Law Foundation, the Massachusetts Municipal Association, and the six largest wireless communications providers operating in the state. The proposal, expected to be filed as legislation in the coming weeks, would remove the state Department of Telecommunications and Energy from the decision-making.
Previously, providers could appeal local decisions to the DTE, which ruled in their favor 10 out of 10 times. The DTE had classified wireless companies as “public service companies,” allowing them to bypass town zoning boards when seeking permission. The compromise allows for local zoning boards to decide on cell tower requests, while antenna requests could be handled by local officials through the building permit process. It discourages the building of new towers, instead encouraging them to be affixed to existing structures. Phone providers could appeal to state and federal courts, not the DTE if they are unhappy with a decision.
Breakaway Solutions buys DataCyr
BOSTON – Breakaway Solutions, Inc. has acquired DataCyr Corp. of Reston, Va. for $6 million in stock and the assumption of accounts payable. Breakaway, in its announcement, said DataCyr transforms data into a common format, including XML, and moves that data from any source to any target database. The plan is for Breakaway to convert DataCyr’s process and technology into its Internet Solutions Centers to help clients accelerate electronic business development, according to Dow Jones.
