Glenn: Is this the year of the post-IPO hangover? Pacific Gateway gets "going concern" comment
BURLINGAME, Calif., April 2 (Reuters) - Communications company Pacific Gateway Exchange Inc. (NasdaqNM:PGEX - news) said it is mulling strategic and financing alternatives that could resolve a ``going concern' issue contained in the auditor's report of its financial statements.
The company also said its chief financial officer resigned.
The company, which provides voice, bandwidth, data and Internet services to carriers and retail customers, said its auditor's report on its financial statements includes a ``going concern explanatory note.'
Company officials were not available for comment.
Pacific Gateway said it exploring alternatives that include private equity investments in its Internet subsidiary Onyx and select asset sales.
The company said Sandra Grey, its current chief financial officer, has resigned her position to pursue other opportunities. Caye Hursey will serve as acting chief financial officer effective April 1, according Pacific Gateway.
After the market closed on Friday, the company reported audited earnings for 1999 that were lower than the previously announced preliminary financial results.
Revenues were $605 million and net income was $8 million, or 41 cents per share, for 1999. It previously announced preliminary financial results for 1999 of $9.5 million, or 48 cents per share.
The company said the variation reflects adjustments related to the timing of the recording of certain expenses. In connection with these adjustments, Pacific Gateway said it is revising its quarterly results for 1999.
The company said it has negotiated an extension, from March 31, 2000 until May 15, on terms of its credit agreement with Deutsche Bank and Bank of America and a waiver of certain current defaults.
Shares of Pacific Gateway closed at 14-11/16 on the Nasdaq on Friday, up 3/16 on the day. |
