Cupertino, Calif. -- Hybrid Networks Inc., a major
maker of phone-line-return cable modems, said last Monday that it will delay filing its
Form 10-Q quarterly report while it reviews the impact of "increasing weakness"
within the wireless cable industry and how it is affecting collection and product-return
The firm's stock price fell 32 percent, to $4.31 from
$6.31, on the news.
Hybrid -- which put out a press release about its
first-quarter results April 14 -- cited "the request of the company's major
distributor servicing the wireless market to return an additional substantial amount of
inventory over what it had previously requested, as well as continuing
accounts-receivable-collection issues," in announcing the delay.
Hybrid had said that its revenue for the quarter ended
March 31 was $3.5 million after an $800,000 reserve against potential customer returns.
Its quarterly net loss was $3.7 million, or 36 cents per share -- about $1 million more
than analysts had estimated -- and it included a $450,000 bad-debt provision.
At the time, analysts noted that Hybrid also suffered when
customer Jones Intercable Inc. canceled telco-return-modem orders due to the lawsuit by
Jones shareholder BCI Telecom Holdings Inc. (BTH) over the launch of Jones Internet
Channel. BTH won that lawsuit earlier this month, blocking further launches of the
In a prepared statement last week, Hybrid CEO Carl
Ledbetter said the company was "obviously disappointed with the current situation in
the wireless broadband-access market," which makes up a significant portion of
Hybrid's business. Hybrid will "remain committed" to wireless and cable
applications, though, and it is "encouraged by the acceptance" of its recently
delivered two-way QPSK (quadrature phase shift key) cable modems, he said.