More bad news from RCO. 10K late filing request included this.
(1) Name and telephone number of person to contact in regard to this notification
Mitchell M. Cohen, Executive Vice President and Principal Financial Officer
Name and Title
212-440-1550
(Area Code) Telephone Number
(2) Have all other periodic reports required under Section 13 or 15(d) of the Securities Exchange Act of 1934 or Section 30 of the Investment Company Act of 1940 during the preceding 12 months (or for such shorter) period that the registrant was required to file such reports) been filed? If answer is no, identify report(s).
[X] Yes [ ] No
(3) Is it anticipated that any significant change in results of operations from the corresponding period for the last fiscal year will be reflected by the earnings statements to be included in the subject report or portion thereof?
[X] Yes [ ] No
If so, attach an explanation of the anticipated change, both narratively and quantitatively, and, if appropriate, state the reasons why a reasonable estimate of the results cannot be made.
For the year ended December 31, 2003, the Company will report a net loss of approximately $29,000,000, an increase of approximately $20,000,000 from the loss incurred in the prior year of $9,000,000. The basic and diluted loss per share for the year ended December 31, 2003 will be approximately $.20 as compared with $.14 for the year ended December 31, 2002.
The increased loss of approximately $20,000,000 is due to approximately $9,000,000 of increased financing costs and $2,000,000 of deemed dividends associated with the various capital-raising activities of the Company during 2003, and increased operating expenses of approximately $9,000,000, primarily due to the certain issuances and modifications of non cash stock-based compensation to former and current management and board members, and costs associated with the general expansion of its work force and incurred in connection with the launching of its new HealthRamp technology products, its LifeRamp business and its acquisitions of ePhysicians and Frontline Communications during 2003.
For the quarter ended December 31, 2003, the Company will report a net loss of approximately $19,000,000 an increase of approximately $14,700,000 from the loss incurred in the prior quarter of approximately $4,300,000. The increased loss of approximately $14,700,000 is due to $9,500,000 of increased financing costs and $2,000,000 of deemed dividends associated with various capital-raising activities, including offerings and beneficial conversions of securities that took place during the fourth quarter of 2003, and $5,200,000 of increased operating expenses attributable to issuances and modifications of noncash stock-based compensation, and the general expansion of the Company's work force and businesses, occurring during the fourth quarter. |
