Although Liberate Technologies posted earnings that generally improved on
last year's marks, the company is still predicting grim times for the coming
The San Carlos, Calif.-based interactive-middleware provider posted a pro
forma loss of $5.9 million and a basic net loss of 6 cents per share, both in
line with the company's revised guidance issued recently.
Pro forma revenues totaled $21 million, up 29 percent compared with the $16
million posted in the same quarter of 2001.
But the company wasn't exactly cheery about prospects in the quarter now
'Well-publicized slowdowns in the telecommunications and cable sectors, in
particular, have obviously greatly impacted our customers and potential
customers,' chairman and CEO Mitchell Kertzman said in a conference call.
With a tightening of capital expenditures, restructuring among European
cablers and the looming AT&T Broadband-Comcast Corp. merger, 'All of this
has led to, I think, a slowdown in capital spending, a slowdown in the pace of
digital deployments to subscribers in many geographies,' he added.
While Liberate is optimistic about the long-term health of the cable-TV
market, the company remains fairly pessimistic about the upcoming quarter.
'You assume that conditions are going to continue to be difficult, and all of
the indicators that we have seen in the market would indicate that,' Kertzman
Liberate is estimating that for the quarter now under way, revenues will be
in the $20 million to $22 million range, with an pro forma loss of 6 cents to 8
cents per share.
Kertzman said Liberate will continue to eye expenses, noting that cash and
cash equivalents totaled more than $390 million as of May 31. The company's
projected cash burn for the upcoming quarter is about $25 million.
With prospects still somewhat grim, Liberate is now pushing back its time to
profitability by two quarters, estimating that it will hit that mark in the
period between Dec. 1 and May 31, 2003.