OT TO ZX RE: ISPD AND BRKT. Do you still have a position in brkt?? If so, I'd like to know what you think of the following mess at ISPD. BRKT was down to 28 1/2 on Friday and I'm thinking of selling my remaining 1k shares at the open on Monday. ISPD appears to be a total loss and might be delisted.
Friday October 6, 10:24 pm Eastern Time
Interspeed sees weak Q4, seeks financing, CEO resigns
(UPDATE: Adds details throughout from company spokeswoman)
NEW YORK, Oct 6 (Reuters) - Interspeed Inc (NasdaqNM:ISPD - news) said on Friday it expects to report a fourth quarter net operating loss that ``substantially exceeds analysts' published estimates'' on much lower than expected revenue and added that chief executive officer Stephen Ide had resigned.
The telecommunications equipment maker also said it had come to management's attention that some revenue may have ben incorrectly recognised in its unaudited quarterly financial statements for each of its prior quarters of fiscal 2000. Therefore, Interspeed expects that its unaudited results for all of the interim periods of fiscal 2000 will be restated.
Interspeed said it is considering alternatives for short-term financing to meet its liquidity needs, including possible borrowing from current shareholders.
Interspeed's chief technical officer and senior vice president of research and development, Rajeev Agarwal, was named president and CEO.
The company also said it has terminated the employment of Arthur Goodwin, senior vice president of worldwide sales, and Christopher Whalen, vice president of sales, effective immediately.
Interspeed's spokeswoman called the management departures ``personnel'' issues and did not provide further details.
The company estimates that gross revenues will be ``substantially below'' analysts' published estimates at about $660,000 for the fourth quarter ended Sept 30. According to the spokeswoman, analysts' consensus called for Interspeed to report revenues of $6 million to $7 million for the quarter.
Interspeed went public in Sept 1999 and had revenues of $1.978 million for the year ended Sept 30, 1999, she said.
Shares of Interspeed closed unchanged at $3-27/32 on Friday afternoon, before the announcements were made. The shares have traded between $3-3/8 and $39-15/16 during the last 52 weeks.
The company tentatively plans to report its fourth quarter results on Oct 26, the spokeswoman said. |
