Cidco restates losses
The Internet appliance maker, which already faced delisting from Nasdaq for not filing required regulatory documents, has restated its first-quarter losses for 2000.
In a report filed Monday with the Securities and Exchange Commission, the company said it had a loss from discontinued operations of $7.8 million, or 56 cents per share, in the first quarter last year--not a loss of $5.6 million, or 41 cents per share.
The company also warned in the filing that it might not have enough cash to make it through the next 12 months.
In a May 16 filing with the SEC, Cidco said it expected that it had underreported its liabilities and the previously reported cost of goods in its telecommunications gear business, which it sold in December. The company also said it was delaying the regulatory filing of its 10-Q because it was still auditing the finances of the discontinued telecom equipment business.
"The investigation found that cost of goods sold related to discontinued operations was understated by a total of $7.7 million during the previous three years," Cidco said in Monday's 10-Q filing.
The company blamed the problem on "system implementation issues and misunderstanding of accounting procedures."
Company executives would not comment Monday but will hold a conference call on the matter Tuesday.
On May 29, Cidco announced that it faced delisting from Nasdaq because it had failed to file its 10-Q. Nasdaq also added the letter "E" to the company's ticker symbol because of the delay in the filing. The company now trades under the symbol "CDCOE."
Nasdaq has scheduled a hearing on Cidco on June 21.
The company said in Monday's regulatory filing that Nasdaq may still delist the stock because it has been trading under $1 for so long.
Cidco, which got its start in 1988 making caller ID boxes for telephones, has been looking to revamp itself into solely a maker of Net appliances such as the MailStation and Mivo. In April, the company said it had about 100,000 subscribers for its devices, which are primarily used to send and receive e-mail.
The company said in February that it would trim its advertising budget in an effort to try and lower the number of subscribers it would take for the company to break even.