This is a cop out when it comes to explaining failure. It wasn't a management, technology, vision, etc problem which are all attributable to decisions made but instead we ran out of cash (something mgmt has less control over by implication).
When companies succeed, it was management prowess. When they fail, it's exogenous "headwinds". It's commonly seen in big and small cos.
What's more interesting is that based on this statement, the company's biz model actually seems to be raising financing. Very 1999-2000 of them.
Btw, this is not to imply that capitalization is unimportant but if you are running out of money and need more, you either convince someone to give it to you or you make some hard resource allocation decisions and reduce your short-term plans so you can live to fight another day. Failure to do so is simply a management failure (no matter the nice spin).
When companies succeed, it was management prowess. When they fail, it's exogenous "headwinds". It's commonly seen in big and small cos.
What's more interesting is that based on this statement, the company's biz model actually seems to be raising financing. Very 1999-2000 of them.
Btw, this is not to imply that capitalization is unimportant but if you are running out of money and need more, you either convince someone to give it to you or you make some hard resource allocation decisions and reduce your short-term plans so you can live to fight another day. Failure to do so is simply a management failure (no matter the nice spin).