Teligent gets "going concern" comment from auditors
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NEW YORK, April 3 (Reuters) - Telephone and data services
company Teligent Inc. said its auditors raised
concerns that the telecommunications services company may not
be able to continue operating as a "going concern."
"The company has incurred recurring operating losses and
has a substantial need for working capital. These conditions
raise substantial doubt about the company's ability to continue
as a going concern," according to the report of Teligent's
auditors Ernst & Young. That report was included in Teligent's
recent filing with the Securities and Exchange Commission.
Teligent, which transmits voice and data services through
the air rather than over traditional fiber or copper networks,
said it does not have sufficient funds to operate its business
through 2001.
"The company's continued existence is dependent upon
receiving additional funding to operate its business. The
company cannot guarantee that it will be able to
obtain additional funding on acceptable terms," Teligent said
in the filing.
Teligent, which has had operating losses and negative cash
flow since its inception in 1996, last fall said it would fire
workers, cut back its capital spending, and exit the retail
business in nine markets to save money.
Teligent posted on Feb. 28 a fourth-quarter net loss of
$270.7 million, or $4.25 a share, compared with a loss of
$156.6 million, or $2.89 a share, a year earlier.
Fourth-quarter revenues rose to $54 million from $15.5 million
a year earlier.
REUTERS
Rtr 14:43 04-03-01 |
