No, they said it was Bloodlines, the game took longer than expected to develop, and didn't sell well, and they sort of had all their eggs in that basket.
Edit: And yes, i know the story about Valve and them having to delay the release, but heres the deal with that. The game was kind of a buggy mess, i remember because i bought it when it came out, and it got a bad rep for being a bug riddled game. They had extra development time because they had to hold back release, which means if it came out before Half Life 2 it may have been even more broken.
So, if anything, Valve helped them.



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