Let's look at some of these tidbits & FACTS before anyone attempts to drag new blood in with nonsense hype about buyouts. Important " FACTS" from a usat 10Q filing made on 5/17/99. Check this out !!!!! ftel.com's biggest customer has some major hurdles to overcome.
ftel.com stated it was paid by usat for all the equipment it supplied, but look at this statement by usat from the above filing.
>>>>>>>As of March 31, 1999, approximately $3.7 million in
equipment purchases and installation costs were in accounts payable as compared to $2.5 million at December 31, 1998, reflecting purchases made pursuant to purchase orders with the Company's primary equipment and service suppliers. Cash on hand at March 31, 1999 was $1,1 million compared to $4.3 million at December 31, 1998.. <<<<<<<<<<<<
HOW DOES FTEL.COM COUNT REVENUE ??? Look at ftel.com's product revenue figure below ( Q ending March 31, 1999 ), taken from their 10Q filed 4/29/99.
1999
(UNAUDITED)
Sales
Product ..................................... $ 3,762,000
THE ABOVE FIGURE IS AWFULLY SIMILIAR ISN'T IT ????? READ THIS LINE AGAIN FROM USAT'S FILING. >>>>>>As of March 31, 1999, approximately $3.7 million in equipment purchases and installation costs were in accounts payable <<<<<<<<<< What gives here ???? usat owes $3,700,000 ( ACCOUNT'S PAYABLE ) and ftel.com recorded that same figure as revenue ???? IS THIS A COINCIDENCE ??????? HOW DID FTEL.COM GET PAID ?????
USAT'S TROUBLES START BELOW !!!!!!!! DO YOU THINK THIS MAY BE THE BEGINNING OF THE END FOR USAT ??????
>>>>>>>During the quarter ended March 31, 1999, the Company completed $6.1 million in private debt and equity financing as compared to $9 million for the year ended December 31, 1998. Approximately $20 million in additional capital is needed to fund the Company's planned capital investments and budgeted operating expenses in 1999. The Company anticipates that the required funds
will be obtained through the sale of additional equity securities, debt financing and/or equipment lease arrangements. However, the Company's ability to raise capital has been adversely affected by the trading suspension invoked upon it by the SEC from January 29, 1999 through February 12, 1999, and its aftermath, and may be affected by certain pending class actions. The on-going SEC investigation may further hinder the Company from attracting new equity investors and lenders, and there is no assurance that capital can be raised through further equity sales, new credit facilities or other financing on terms that will be acceptable to the Company.
<<<<<<<<<<<<<<<
Another pertinent quote from usat's 10Q below.
>>>>>>>The suspension occurred, according to the SEC, because questions were raised about the accuracy and adequacy of the publicly disseminated information concerning, among other things, the status and extent of the Company's business operations. Although the temporary suspension has ended, the SEC is continuing its investigation of the Company and no assurance as to its outcome can be given. <<<<<<<<<<
PAY GOOD ATTENTION TO THE LAST LINE "the SEC is continuing its investigation of the Company and no assurance as to its outcome can be given."
In fact this whole section is worth reading from usat's 10Q report. It details all the "lawsuits and investigations" against it.
PART II
OTHER INFORMATIONITEM 1. LEGAL PROCEEDINGS
PENDING OR THREATENED LITIGATION, CLAIMS OR ASSESSMENTS (EXCLUDING UN-ASSERTED
CLAIMS AND ASSESSMENTS):
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