METRICOM - Wireless Data Communications Message Board

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Technology Stocks : METRICOM - Wireless Data Communications

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Dec 5 9:30 AM EST

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To: Stephen Ettorre who started this subject	3/31/2001 4:03:17 PM
From: Caxton Rhodes	Read Replies (1) of 3376

March 30, 2001 Metricom's Auditor Issues Caution About Firm's Future A WSJ.com News Roundup Metricom Inc. auditor Arthur Andersen said it has "substantial doubt" about the company's ability to continue as a going concern, according to Metricom's annual report filed with the Securities and Exchange Commission Friday. Two weeks ago, Metricom said it cut 22% of its work force. That move came after the company in February posted a wider loss for the fourth quarter and said it would shelve plans to expand its Ricochet wireless-Internet service into additional markets until it can raise more funding. Chief Executive and Chairman Timothy Dreisbach resigned shortly thereafter. Arthur Andersen cited the company's recurring losses from operations, as well as the company's significant financial commitments for equipment as its reasons for raising a going concern doubt, according to the filing. At Feb. 28, Metricom had working capital of about $327 million and outstanding purchase commitments for network equipment, network construction labor and modems of about $346 million. Metricom said that at its current level of operations and rate of negative cash flow, it expects it will need additional cash resources of about $500 million to achieve positive cash flow from operations. The company said it has enough cash and cash equivalents to satisfy its capital expenditure requirements through August.

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