Hybrid Networks Inc. announced Thursday that it would cut 80 percent of its
work force Friday and shut down by the end of April.
In January, the fixed-wireless-system maker said it would exceed its
fourth-quarter revenue guidance by $2 million, for a total of $7 million in
revenue for the period.
Then it brought in a new executive vice president and chief financial
officer, Scott C. McDonald, and in its fourth-quarter results Feb. 20, it had
narrowed its losses, seen its revenue fall and announced that it had concerns
about its liquidity.
Hybrid issued a statement Thursday that its attempts at a sale or merger were
not successful and that it expected first-quarter revenue of $700,000. It has no
backlog for future periods, it added.
Payment of employee compensation, termination and other expenses related to
Friday's layoffs will leave the company with less than $1 million in cash and
accounts receivables, and it 'does not foresee having sufficient liquid assets
to continue even its scaled-back operations beyond April 30, 2002,' it said.
The company added that as a result, it will shut down.
The company has liabilities of $5.5 million in convertible notes, secured by
its assets, and obligations to its landlord, it added. After settling with
creditors, Hybrid said, nothing will be left for shareholders.
A company spokeswoman did not return calls.