UTStarcom Expects Auditor "Going Concern" Letter
UTStarcom (UTSI) this afternoon said that as a result of recurring losses and negative cash flow from operations, the company expects to receive a “going concern uncertainty explanatory paragraph” in its audited 2008 results.
However, UTStarcom said that if it reaches its projected 2009 sales target and contains expenses and cash used in operations to the levels contemplated in its 2009 financial plan, it should have sufficient liquidity to finance its working capital and cap ex requirements for the next 12 months.
But here’s the thing. The telecom equipment company declined to actually provide 2009 financial guidance due to the current economic climate. So that’s nice: The company is in deep trouble, and it has a plan to get out. But it isn’t interested in telling you what it is, because the economy is bad… right?