Inacom considers sale to solve cash problem
The information technology services provider is having cash-flow problems and looking at alternative financing options, including the possibility of selling the company.
Inacom has hired The Blackstone Group for financial advice.
The company has struggled in its move from computer hardware sales to technology services. In February, it sold its former product customization and logistics operations to Compaq Computer for $369.5 million in cash.
The Atlanta-based company said it has delayed the release of its past two fiscal-quarter results because of issues with account receivables in the operations it sold to Compaq. Inacom said it will restate its financial results for the first three fiscal quarters of 1999 and all of 1998 to recognize special charges. Those charges exceed $25 million, the company said.
Inacom's stock has fallen sharply during the past year. At the end of yesterday's trading on the New York Stock Exchange, the company's stock was down 13 cents, or almost 12 percent, at 94 cents. Its 52-week high was $15.30 in July.