A spate of auditors' warnings about the sector has also heightened trepidation. Since January, seven more e-businesses have filed annual reports in which their auditors raise new questions about their ability to continue doing business. Such opinions indicate ''the auditors think the probability of bankruptcy is pretty high,'' says Rebecca Todd, an accounting professor at Boston University. With cash dwindling, the long awaited consolidation is expected to hit consumer companies during the second half of the year. That won't save everyone, though.
Companies now have to prove themselves.
In the e-tailing market, for instance, among the standouts will be those that can solve tricky distribution problems. But across the board, companies will have to show a clear path to profitability and the ability to manage costs. Now that's a blast from the past. The McGraw-Hill Companies Inc. All rights reserved.