LAS VEGAS Despite a lawsuit filed earlier this month alleging that PurchasePro made positive but false statements about its results and business, the company remains optimistic and confident that its operations will not be negatively affected, HOTEL BUSINESS. has learned.
While unable to comment directly on the pending lawsuit filed against the company by several of its shareholders, Steve Stern, PurchasePro s vp/corporate communications did say that, almost all stocks in this sector have dropped and high technology has taken a beating. The stock market by nature is an irrational auction.
Stern was keen to point out that although PurchasePro s 1Q results indicated that the company was in a loss position, the company has developed a strong roster of clients including Hilton, AOL, Hewlett Packard, Honeywell, Computer Associates, Gateway and Sprint. He added that PurchasePro also services a growing number of small- and mid-sized companies.
We re currently in a loss position, but we re a public company that s only two years old, said Stern. It takes time to become profitable you have to build a business, make adjustments and continually move forward.
Stern supports his confidence in PurchasePro s impending profitability by citing the company s internal strength. Sean McGhee recently became our president and we also have a new CFO. We have a strong marketing and sales team for strong products. Furthermore, our acquisition of Bay Builder just came through, which gives us additional capabilities in e-sourcing. (5/17/01) Kelly Wayne