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Covad reports $1.4 B net loss in 2000; Q4 losses

Thu, 05/24/2001 - 8:00pm
Anne Kerven

Covad Communications Group Inc. reported a $1.4 billion net loss, or $9.47 a share, for 2000 and a $907.5 mission net loss for its fourth quarter.

The results generated a "going concern" from its auditors.

"The focus in 2000 was on fast growth and maintaining a leadership position," Chair Chuck McMinn said in a statement. He also notes Covad has sufficient cash to fund operations into the second quarter of 2002.

It also adjusted revenue for its previous three quarters of 2000 from $156.3 million to $128.3 million.

Revenue for the quarter ended Dec. 31 reached $55.2 million, up 40 percent over the previous quarter, it says. Excluding restructuring and other charges, its loss from operations was $259.7 million with a net loss of $907.5 million.

Revenue for the year rose to $158.7 million, up from $66.5 million for the previous year. Covad says the total revenue doesn't include $40 million owed from ISPs who were uncertain to pay. It also includes a $22.4 million reduction due to SEC rule changes.

Annual operations losses increased to $1.35 billion — up from a loss of only $171.6 million the previous year. Excluding charges and writeoffs for in-progress R&D, operations losses were $756.1 million. Net loss for the year was $1.44 billion, or $9.47 a share, compared with $195.4 million, or $1.83 a share, a year ago, Covad says.

The adjustments to prior quarters were largely caused by weaknesses in Covad's internal controls during 2000 and the inability of the controls to supports the company's growth, management changes and changes in financial staff, acquisitions and restructuring, Covad reports.

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