Although many companies have been negatively impacted by recent troubling financial times, Sunnyvale, Calif.-based Adaptive Broadband Corp. noticeably has taken a hit, capped by a Nasdaq delisting last week, the result of the company’s failure to file its Form 10-K for the transition period ended Dec. 31 with the Securities and Exchange Commission in the allotted time.
The wireless broadband equipment manufacturer said the delisting should only be temporary, however, and the delays in filing with the SEC have more to do with accounting changes than lack of business.
“Basically it’s because we’re going through an internal audit,” said Franchesca Walker, vice president of marketing for Adaptive Broadband.
She said recent legislation has forced the company to tighten up some of its accounting practices, and it is in the process of aligning itself with those practices, but it has taken longer than expected.
“The paperwork is in now and we’re waiting for Nasdaq to get it all resolved,” Walker said.
Adaptive Broadband reiterated its prior statement that it currently expects to complete its accounting review and bring its SEC filings current no later than June 15. After bringing its filings current, the company intends to seek to have one or more market makers quote its common stock on Nasdaq’s OTC Bulletin Board.
The company also said it will seek to arrange for one or more market makers to quote its common stock on the Pink Sheets quotation service, which does not require that issuers of quoted securities be current in their periodic filings.
The review of its calendar-year 2000 financial results forced Adaptive Broadband to delay the filing of its Form 10-Q for the fiscal third quarter ended March 31 as well. Slow sales in the point-to-multipoint market also caused the company to adjust its third-quarter revenue estimates from $2 million to about $1 million.
Upon completion of the review of its year-2000 financials, the company expects its revenues for the fiscal year ended June 30, 2000, to be reduced by approximately $5 million. The company said a substantial portion of the revenue reduction reflects customer balances that have not been paid to date, as well as product returns.
This string of bad news, including the reduction of its work force from 150 to 60 employees at the beginning of the month, is troubling, but Walker said Adaptive Broadband has no plans to leave the business.
“Certainly things are slower, but we’re selling product,” she said.
The company is doing healthy business in the Asia-Pacific market, which makes up for a lack of activity right now in the United States, said Walker.
Adaptive Broadband’s flagship product, AB-Access, spans the frequency range from 2 GHz to 43.5 GHz, and offers data rate speeds up to 25 Megabits per second.
