News

ObjectSoft files for bankruptcy

March 19, 2002

KIOSKmarketplace has learned that troubled kiosk maker ObjectSoft Corp. (OTC Bulletin Board: OSFT.OB) has ceased operations.

The Hackensack, N.J. company closed up shop July 12, the day a merger deal fell through with Golden Screens Interactive Technologies Inc., an interactive kiosk business based in New York. On the unlucky Friday, July 13, ObjectSoft announced it was filing for Chapter 7 bankruptcy, according to news release issued by Dow Jones.

ObjectSoft made a product called FastTake kiosks. The kiosks let users search and review movie titles, sample movie trailers and purchase other goods and services.

In June, chief executive officer S. Michael Rudolf told KIOSKmarketplace the company had installed 259 of the kiosks, which cost between $8,000 and $10,000 each.

When asked if the kiosks were profitable, Rudolf said, "Some are."

Rudolf explained the difficulty ObjectSoft was facing was due, in part, to the economy's effect on its business model, which depended primarily on advertising.

"We certainly have been impacted by events in the Internet world, specifically with regard to advertising," he said. "Not only the level of advertising, but the ability and cost of the revenue that we get from advertising. Advertising levels on the Internet have dropped dramatically, as well as the pricing for the advertising."

KIOSKmarketplace reported recently that companies dependent on advertising revenues have been endangered by the same economic conditions that affected dot-coms (see "Kiosk companies feeling effects of slowdown").

In April Objectsoft reported that its stock had been delisted from the NASDAQ SmallCap Market. Its stock had been trading in the one-half cent range.

Rudolf inherited a difficult position when he took over as CEO from David E.Y. Sarna, who resigned in April. In June Rudolf described his plans.

"My philosophy right now is first of all to stabilize the company, make sure the employees have a clear and consistent understanding of what we're trying to do, and move the business forward."

He was also managing the proposed merger with Golden Screens.

At that time, ObjectSoft had 14 employees. The employees were laid off when the Golden Screens merger fell through, according to a news release issued by ObjectSoft in July. ObjectSoft was founded in 1990.