Network Computing Devices Inc. (Nasdaq: NCDI) plunged 22 percent Monday after auditors flagged the company's operating losses and lack of capital.
Shares in the provider of access and management products were down 11/16 to 2 3/8. The stock was almost cut in half earlier in the month when it warned it would report a wider-than-expected loss for its first quarter, including restructuring charges.
Network Computing Devices isn't the only company to crash on cash concerns. Drkoop.com (Nasdaq: KOOP) shares bottomed out after auditors flagged the company's cash crunch in March.
The auditors, KPMG LLP, issued its opinion in Network Computing's annual report.
Network Computing said its ability to continue in its present form depends on raising additional capital or obtaining financing to achieve profitability and positive cash flow.
The company said it is "actively engaged in exploring several strategic alternatives to enhance shareholder value."
On April 4, Network Computing announced that it secured a $15 million revolving line of credit from Wells Fargo Bank's Foothill Capital subsidiary and implemented a 20 percent reduction of its work force.
Network Computing Devices narrows loss in fourth quarter