Maui, Hawaii (Oct. 28, 2002) -- Fiscal 2002 proved to be tough year for CPA2Biz, the American Institute of CPAs' Web portal, which sustained greater than expected losses, AICPA executives told Council members at their Fall meeting last week.
While he admitted that the portal's performance to date hasn't met initial expectations, CPA2Biz president Navin Chaddha assured council members that "We've taken steps during the past six months to correct the mistakes that were made in the first year of operation."
As of June 30, Chaddha said the portal had about $11 million cash on hand, and that while results for the quarter weren't final, the portal's cash balance at the end of September was probably between $8 million and $9 million.
CPA2Biz plans to raise $10 million over the next six to nine months from outside investors and is aiming to achieve profitability in the next 18 to 24 months, said Chaddha. He noted that the portal reduced its burn rate to about $500,000 per month, down from $1 million per month last year.
Meanwhile, the portal's number of registered users has grown 33 percent to 100,000 since the May Council meeting and online sales rose 66 percent to average more than $500,000 per month, Chaddha said.
-- Melissa Klein
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