http://www.zdnet.com/eweek/stories/general/0,11011,2713154,00.html
By Dennis Fisher, eWEEK
April 27, 2001 11:27 AM ET
Just three weeks after embarking on a restructuring plan designed to
salvage the company, troubled Internet security provider Pilot Network
Service Inc. on Thursday ceased operations and laid off all of its
employees.
The company, which provided secure Internet hosting and VPN and
extranet services, had laid off 23 percent of its work force at the
end of March and launched the restructuring in a last-ditch effort to
keep the company afloat. NASDAQ had threatened on March 28 to de-list
the company's stock, which closed yesterday's trading at $0.21.
Pilot, based in Alameda, Calif., certainly didn't suffer from a lack
of high-profile customers. PeopleSoft Inc., Newsweek, the Los Angeles
Times, GE Capital and the Gap Co. all used one or another of the
company's services.
However, the money coming in from the A-list companies it served
wasn't nearly enough to offset Pilot's mounting losses. In the quarter
ended Dec. 31, the company lost $11.2 million on revenue of $9.7
million. The company had hoped that a planned strategic alliance with
AT&T Corp. would get it over the hump, but the deal fell through and
Pilot never found another source of funding.
Pilot's core technology was a heuristics-based architecture that
stored information on each attack on the network and was then able to
recognize and defend against similar attacks in the future.
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Received on Sun Apr 29 05:35 CDT 2001