[ISN] Security specialist Pilot closes up shop

From: InfoSec News (isnat_private)
Date: Sun Apr 29 2001 - 03:16:40 PDT

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    http://www.zdnet.com/eweek/stories/general/0,11011,2713154,00.html
    
    By Dennis Fisher, eWEEK
    April 27, 2001 11:27 AM ET
    
    Just three weeks after embarking on a restructuring plan designed to
    salvage the company, troubled Internet security provider Pilot Network
    Service Inc. on Thursday ceased operations and laid off all of its
    employees.
    
    The company, which provided secure Internet hosting and VPN and
    extranet services, had laid off 23 percent of its work force at the
    end of March and launched the restructuring in a last-ditch effort to
    keep the company afloat. NASDAQ had threatened on March 28 to de-list
    the company's stock, which closed yesterday's trading at $0.21.
    
    Pilot, based in Alameda, Calif., certainly didn't suffer from a lack
    of high-profile customers. PeopleSoft Inc., Newsweek, the Los Angeles
    Times, GE Capital and the Gap Co. all used one or another of the
    company's services.
    
    However, the money coming in from the A-list companies it served
    wasn't nearly enough to offset Pilot's mounting losses. In the quarter
    ended Dec. 31, the company lost $11.2 million on revenue of $9.7
    million. The company had hoped that a planned strategic alliance with
    AT&T Corp. would get it over the hump, but the deal fell through and
    Pilot never found another source of funding.
    
    Pilot's core technology was a heuristics-based architecture that
    stored information on each attack on the network and was then able to
    recognize and defend against similar attacks in the future.
    
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