Digital Edition

SYS-CON.TV
The Numbers No Longer Add Up at Key3Media Group
The Numbers No Longer Add Up at Key3Media Group

(Las Vegas, November 18, 2002) - The day after COMDEX closes later this week, executives of the show's producer, Key3Media Group, Inc, will return to their Wilshire Boulevard offices, in Los Angeles. . .and start trying to figure out if there's any way for them to stay in business.

One immediate problem is that Key3Media simply lacks the cash to meet its Q4 financial obligations, having made them for Q3 by only a narrow squeak. Specifically, it seems that the company will be unable to pay the interest payment on its senior subordinated notes due on Dec. 16. One avenue the company's directors are exploring is, inevitably, Chapter 11 bankruptcy.

What occasioned Key3Media's annus horribilis here in 2002? Why, for the first nine months of this year taken together, did it end up with earnings before interest, taxes, depreciation and amortization (EBITDA) revenues of negative $299.6 million...and a net loss of $686.2 million? Opinions differ, but for starters the massive overhead of running the national COMDEX show is no longer surpassed by the revenue coming in from it. There just aren't enough attendees, or vendors wanting exhibit space, for the numbers to add up any more.

The result? No fewer than six of Key3's twelve board members have resigned since July, in which month the company suffered the indignity of being de-listed from the New York Stock Exchange. Key3Media Group stock now trades in the over-the-counter market for less than 3 cents per share and the company has called in specialists to help it bolster its beleaguered balance sheet.

It will be a challenge, because Key3 is under-performing compared to similar companies in the tech show space: reports show that the average attendance of such shows is down 14%, but COMDEX attendance this year is down 41%. Similarly the average amount of exhibit floor space sold at tech trade shows fell 5.6% last year, but at COMDEX floor space is down 32%.

So perhaps even the financial wiles of boutique investment bank Houlihan Lokey Howard & Zukin might not be enough to save Key3. Indeed one COMDEX speaker is a technology commentator and specialist on the future, Mitchell Levy. President and CEO of ECNow.com, a strategic consulting company, Levy is offering journalists today the following topic as a talking point for interviews with him: "Will COMDEX survive? - An insider view".

About Java News Desk
JDJ News Desk monitors the world of Java to present IT professionals with updates on technology advances, business trends, new products and standards in the Java and i-technology space.

In order to post a comment you need to be registered and logged in.

Register | Sign-in

Reader Feedback: Page 1 of 1



ADS BY GOOGLE
Subscribe to the World's Most Powerful Newsletters

ADS BY GOOGLE

Consumer-driven contracts are an essential part of a mature microservice testing portfolio enabling ...
To Really Work for Enterprises, MultiCloud Adoption Requires Far Better and Inclusive Cloud Monitori...
DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, ...
Containers and Kubernetes allow for code portability across on-premise VMs, bare metal, or multiple ...
We are seeing a major migration of enterprises applications to the cloud. As cloud and business use ...
DXWorldEXPO LLC announced today that "IoT Now" was named media sponsor of CloudEXPO | DXWorldEXPO 20...
SYS-CON Events announced today that Silicon India has been named “Media Sponsor” of SYS-CON's 21st I...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, disc...
In this presentation, you will learn first hand what works and what doesn't while architecting and d...
SYS-CON Events announced today that CrowdReviews.com has been named “Media Sponsor” of SYS-CON's 22n...
In his session at 20th Cloud Expo, Scott Davis, CTO of Embotics, discussed how automation can provid...
Everyone wants the rainbow - reduced IT costs, scalability, continuity, flexibility, manageability, ...
Founded in 2000, Chetu Inc. is a global provider of customized software development solutions and IT...
The standardization of container runtimes and images has sparked the creation of an almost overwhelm...
SYS-CON Events announced today that DatacenterDynamics has been named “Media Sponsor” of SYS-CON's 1...
Most DevOps journeys involve several phases of maturity. Research shows that the inflection point wh...
Dynatrace is an application performance management software company with products for the informatio...
Today, we have more data to manage than ever. We also have better algorithms that help us access our...
Andi Mann, Chief Technology Advocate at Splunk, is an accomplished digital business executive with e...
DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held Novemb...