Riversoft losses send shares the way of revenue

Shares in network management software firm Riversoft have slumped 13 per cent on quarterly results which show widening losses.

Riversoft reported an operating loss of £12.7m for three months ending 30 June - 37 per cent higher than the previous quarter, and 128 per cent up on the corresponding quarter last year. This loss was on revenues of just £1m, which represents a fall of almost two thirds since the first quarter of the year.

Riversoft blamed the fall in revenues on a sudden and severe drop-off in orders at the end of the quarter, brought on by the more difficult trading environment. Riversoft has aimed to reduce costs by cutting staff and moving to an indirect sales model, but the revenue shortfall means these measures have failed to stem the losses.

Riversoft still has a very healthy cash position, with £71.2m left from its December 2000 IPO. However, at its current burn rate it will run out of money by the start of 2003.