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Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: patron_anejo_por_favor who wrote (37497)	11/14/2000 7:45:28 PM
From: patron_anejo_por_favor	Respond to of 436258

Covad passes another waystation on the road to zero: biz.yahoo.com Covad Adjusts Q3 Financial Results Continued Commitment to Strong Channel Partners and Current End Users SANTA CLARA, Calif.--(BUSINESS WIRE)--Nov. 14, 2000--Covad Communications (NASDAQ:COVD - news), the leading national broadband services provider utilizing DSL (Digital Subscriber Line) technology, today announced it is making adjustments to previously announced third quarter financial results with regards to five additional deliquent Internet Service Providers (ISPs). The addition of these five companies brings the number of ISPs for which Covad has decided not to recognize revenue on third quarter transactions to 14. Revenue for all 14 these deliquent ISPs will be recognized only after they have satisfied their past due balances. To address the situation, Covad is developing a variety of responses with respect to each of these ISPs, including management of orders, order processing and installations. This action was taken was a result of Covad's continued monitoring of its ISP distribution channel after the close of the third quarter 2000. Despite receiving payments from some of the presently delinquent ISPs in late September and early October, Covad received new information concerning the financial situation of these five additional ISPs after the earnings release on October 17. Accordingly, Covad is adjusting its previously announced third quarter 2000 financial results. Covad's financial statements filed today in its Form 10-Q for the quarter ended September 30, 2000 excludes the revenue contribution from these five other ISPs, in addition to the previously excluded revenue of the nine ISPs announced on October 17. The revenue for the third quarter ended September 30, 2000 was reduced by $10.4 million to $56.3 million compared to the $66.7 million reported on October 17. EBITDA losses for the quarter were increased by $4.9 million to $(125.3) million compared to the $(120.4) million previously reported, due to related reductions to estimates of provisions for doubtful accounts concerning the five additional ISPs. More detailed financial results are available in Covad's Form 10-Q filed today. ``Despite the strong demand for DSL, the health of a portion of our ISP channel has deteriorated very rapidly as the capital markets have pushed many of these enterprises into financial distress,'' said Charles McMinn, Covad chairman. ``We are focused on increasing our volume with more stable ISPs such as Earthlink and XO Communications, adding the direct sales channel to our business, and adding new partners and channels, all of which will be very important to our success going forward. "The most important aspect of this situation is our efforts to continue to bring broadband service to the end users who currently have Covad lines,`` McMinn continued. ''We are working with each ISP to develop plans to provide end users with uninterrupted service.`` I love it. This numbnut blames the nasty "capital markets" for his own stupid mistakes in booking the revenue. I hope they go busto by Christmas....