P-Com Nears Completion of Restructuring Plan.
CAMPBELL, Calif.--(BUSINESS WIRE)--April 2, 2002
P-Com, Inc. (Nasdaq:PCOM), a worldwide provider of wireless telecom products and services, said today it is nearing completion of a comprehensive restructuring program in accordance with its 2002 operating plan.
As part of its restructuring program, P-Com announced it has reached an agreement in principle to restructure the majority of its $29.3 million in bonds. The remaining portion of P-Com's bonds is under discussion with debt holders.
Additionally, P-Com announced is in the process of securing a bank line of credit and raising additional capital through a private placement, both of which are expected to close in the next few weeks. The completion of these initiatives positions the company to meet its objectives in 2002 and addresses a recent "going concern" opinion issued by its auditors in a 10-K report for the year ended 2001.
P-Com also believes it will meet its first quarter revenue target, demonstrating that revenues have stabilized and turned slightly upward from the fourth quarter of 2001.
"During last quarter's earnings conference call, I stated that several initiatives were under way, and that I would keep you informed of our progress," said P-Com Chairman George Roberts. "With this status report, we continue to make progress in our efforts to strengthen our balance sheet. We have also issued a series of announcements stating that we are experiencing growing acceptance of our products in the marketplace. In addition, we are implementing further cost reductions that will decrease cash requirements for 2002. P-Com remains optimistic about its business prospects for 2002 and beyond, and we are on track to execute the restructuring plan outlined in January."
Today's initiatives are part of a restructuring plan announced January 17 that set an expense reduction goal of $3 million in the first quarter of 2002, compared to the fourth quarter of 2001. On March 11, P-Com announced expense reductions and deferred payments that will reduce cash outlays in 2002 by more than $3.3 million.
About P-Com, Inc.
P-Com, Inc. (Nasdaq:PCOM) develops, manufactures, and markets complete lines of Point-to-Multipoint, Point-to-Point and Spread Spectrum wireless access systems. Through its wholly owned subsidiary, P-Com Network Services, the company provides related installation, engineering and system maintenance services for the worldwide telecommunications market. P-Com's broadband wireless access systems are designed for Internet service providers, competitive local exchange carriers (CLECs), cellular and personal communications service (PCS) providers and for governments around the world. P-Com is headquartered in Campbell, California. For more information, visit www.p-com.com, or 408/866-3666.
Safe Harbor Statement
Statements in this release that are forward looking involve known and unknown risks and uncertainties, which may cause P-Com's actual results in future periods to be materially different from any future performance that may be suggested in this release. Such factors may include, but are not limited to, working capital constraints, fluctuations in customer demand and commitments, both in timing and volume, introduction of new products, commercial acceptance and viability of new products and expenses associated therewith, cancellations of orders without penalties, pricing and competition, reliance upon subcontractors, P-Com's ability to have available an appropriate amount of production capacity in a timely manner, the ability of P-Com's customers to finance their purchases of P-Com's products and/or services, the timing of new technology and product introductions, the risk of early obsolescence, and the pending stockholder class action lawsuit. Further, P-Com operates in an industry sector where securities values are highly volatile and may be influenced by economic and other factors beyond P-Com's control, such as announcements by competitors and service providers. Reference is made to the discussion of risk factors detailed in P-Com's filings with the Securities and Exchange Commission, including its reports on Form 0-K and 10-Q.
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|Date:||Apr 2, 2002|
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