Here it is...:
Headline: Glenayre Confirms CONXUS Communications Bankruptcy
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CHARLOTTE, N.C., May 19 /PRNewswire/ -- Glenayre Technologies Inc.
(NASDAQ:GEMS) confirmed today that it holds approximately $49 million in
receivables from CONXUS Communications, which filed for Chapter 11 Bankruptcy
yesterday.
Glenayre previously acknowledged this issue in its March 31, 1999,
earnings release. In that release, the company reported that a customer,
which is now identified as CONXUS, for whom it had provided approximately
$49 million in financing might be in financial difficulties. The company
stated that the customer was in weak financial condition due to continued
operating losses, and was dependent on continued financial support from its
vendors and financial institutions and its ability to secure other capital
monies.
Glenayre also reported that an estimate of a possible range of the loss on
the receivables from this customer could not be determined at that time. The
company also indicated that a change in the estimate of the collectability of
the receivables from this customer could occur in the near term, with a
significant impact on Glenayre's results of operations in the quarter in which
the change is recorded. Glenayre has not yet determined the extent to which
the bankruptcy filing by CONXUS will change the company's estimate of the
collectability of its receivables.
For over 30 years, Glenayre Technologies Inc. has been developing and
providing leading edge personal telecommunication systems, including products
for paging, digital and cellular networks. With over 2,200 employees and with
products installed in 100 countries, Glenayre's net sales exceeded
$399 million in 1998. Additional information about Glenayre is available on
the company's Web site at: glenayre.com .
SOURCE Glenayre Technologies Inc.
-0- 05/19/99
/CONTACT: Mark Smalley of Glenayre Technologies Inc., 704-553-0038, or
e-mail, mark.smalley@glenayre.com /
/Company News On-Call: prnewswire.com or fax,
800-758-5804, ext. 111723/
/Web site: glenayre.com / |
