SourceForge CEO Kauffman's "ADS" Strategy ADdS Up To Zero, Losses Mount, Key Exec Leaves
SourceForge has reported losses of $11.0M for the six months ended June 30 2009 or (.18/sh) compared to $4.7M (.07/sh) for the six months ended June 30 2008 under Scott Kauffman's leadership who was hired December 5th 2008.
SourceForge (NASDAQ:LNUX) closed under its 50-day moving average to $1.24 today with a market cap of $74.87M. With approximately $40 million in cash Kauffman and his management team have managed to establish a value of appx. $35 million for SourceForge.net, ThinkGeek.com, Slashdot.org, and Freshmeat.net combined. (SourceForge's network of web sites serves 35 million unique visitors each month* and includes: SourceForge.net, Slashdot, ThinkGeek, Ohloh.net, fossfor.us and freshmeat.net). ThinkGeek alone is generating appx. $40 million in revenues annually or 67% of total SourceForge revenue. In other words the market is valuing all of SourceForge (less cash) at less than ThinkGeek's annual revenues alone.
And now SourceForge's arguably most substantive management team member announced his departure from the company which is effective September 25th, 2009 or [significantly?] 5 days before the end of SourceForge's Q3 ending September 30th. ThinkGeek's VP and General Manager sold more shares contemporaneous with Sobel's announcement arguably sending a signal to Kauffman and the Board of Directors she is [also] tired of SourceForge Management keeping her option strike price(s) under water i.e. witnessing the destruction of insider shareholder value as well as non-insider shareholder value...and once again, Kauffman's failure to increase shareholder value through a ThinkGeek (NASDAQ:G33K) IPO.
Under Kauffman's leadership there has also significantly been no news, no analyst meetings, no investor conferences, no guidance . What exactly is this management team being paid for and why is the Board of Directors , Directors with controlling positions, and non-insider shareholders tolerating it?
The market continues to confirm Kauffman's ADS strategy ADdS up to nothing.
SourceForge is a superior CEO/Management team away from being a ten-bagger(.)
*Source: Google Analytics, Coremetrics and Omniture, June 2009