Trivium Capital wants SourceForge to buy back shares

By Lisa Kerner

Charlotte, N.C., June 3 - Trivium Capital Management, LLC said SourceForge, Inc.'s response to its suggestion that the company buy back shares with its excess capital was incomplete and didn't address any of the investor's concerns.

"In fact, it read like a holiday card. Thank you for your interest and have a nice day," Trivium said in a June 2 letter to the SourceForge board.

In the letter, Trivium questioned whether SourceForge was a "product" or a company. If SourceForge is indeed a product, Trivium said the company would be "best served as part of an organization selling targeted media advertising."

The letter was included in a schedule 13D filing with the Securities and Exchange Commission.

According to Trivium, SourceForge's current management team hasn't been able to generate repeat business from existing customers "sufficient to build a base of revenue along with new customer additions."

In a Feb. 15 letter to the company, Trivium said SourceForge had too much cash and recommended that the company complete a 10 million share buyback leaving it with $40 million in cash - which, in the investor's view, is more than enough to run the company and complete small acquisitions.

Trivium, an 11.1% shareholder, also suggested the sale of SourceForge's Collabnet holding for more cash "to fuel a larger buyback."

SourceForge, based in Mountain View, Calif., owns and operates a network of media web sites serving IT professionals.

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