Excite@Home stares down the barrel

Excite@Home Inc. and its auditors Ernst & Young LLP have warned that there is "substantial doubt about the Company's (Excite's) ability to function as a going concern" in a filing to the U.S. Securities & Exchange Commission.

The high-speed Internet access and Web site portal company's share price on the Nasdaq exchange has dropped below US$1, and its stock could be delisted for having less than the minimum required net tangible assets and stockholder equity.

The company raised $100 million in June from the issue of convertible notes and $85 million through the restructuring of its optical fiber-backbone agreement with AT&T Corp.

"If the Company's Series A common stock is delisted, the terms of the ($100 million) convertible notes provide for their acceleration of repayment in cash at that time," Ernst & Young said in the filing Monday.

During the day's trading, Excite@Home's share price (Nasdaq:ATHM) fell a further 46 percent to $0.47 per share.

"The company has incurred repeated operating losses and negative cash flows and has a substantial need for additional funding to support its operations," the filing said. "Our existing cash and other liquid assets may not be sufficient to fund operations through the end of 2001. We cannot guarantee that we will be able to obtain additional funding on acceptable terms, if at all."

The company pulled out of its European operations in June and has been shedding jobs steadily throughout the year.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

David Legard

PC World

Comments

Comments are now closed.

Most Popular Reviews

Follow Us

Best Deals on GoodGearGuide

Shopping.com

Latest News Articles

Resources

GGG Evaluation Team

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell

LIFEBOOK UH574

The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi

STYLISTIC Q702

The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott

STYLISTIC Q702

My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Latest Jobs

Shopping.com

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?