The telecommunications industry is very volatile (Chapter 11, Chapter 7, retrenching, lay-offs, etc.) What is happening with Atlantech?
With regard to the industry in general, there is currently a weeding out of companies based on ability to deliver services in a profitable way. Most of the companies that are going through Ch. 11, Ch 7, retrenching, lay-offs, etc. are doing so because they were provided funding either from VC’s or Wall Street with the direction to get big fast during the Internet glory days of 1998 and 1999. These Internet companies were not rewarded for coming up with a plan to get profitable, so they didn’t. The end result is that most companies spent all of their money on getting big without obtaining enough revenue to continue their business once the investment money dried up. And dried up is what happened in 2000 and 2001. Funding sources are no longer available for companies that do not have viable business plans and more volatility and failures are predicted through the end of 2001 (that’s when most of the early funding money finally completely dries up).
