The latest broadband company to enter the financial-investigation club is
radio-frequency-systems provider Microtune Inc.
The Plano, Texas-based maker of silicon and RF tuners used in cable modems
and transmission gear has launched an investigation into a series of negative
charges during the fourth quarter of 2002 that sucked a significant portion of
its revenue dry.
While Microtune delivered $16.1 million in products during the quarter, it
could recognize only $2.2 million of that amount because it didn't get payment
from five customers -- either because credits had been issued to the customers
or they were late in paying the invoices.
The company has ordered its audit committee to look into the matter, and it
has retained independent counsel John M. Fedders to lead the effort. It also has
notified the Securities and Exchange Commission of the investigation, which
should produce findings in mid-2003.
In light of the investigation, Microtune is suspending its stock-repurchasing
For the full year, the company did see a modest increase in revenue, pulling
in $67.6 million compared with $63.1 million in 2001. But its pro forma loss
widened to $35.3 million versus a $14.7 million loss in the prior