Liberate joins standards effort; files 10-K

Sun, 08/26/2001 - 8:00pm
Anne Kerven

Liberate Technologies is the 100th member to join SCTE's standards program, the company says. It also filed its annual report, noting among its risks that it has cash to meet capital needs for more than a year. But if it needs to raise capital and can't, it may not be able to fund its continued operations, it says.

Liberate says joining the standards program will let it contribute to SCTE's Cable Applications Platform and Data Standards subcommittees. The company already is lead author for CableLabs' OpenCable Applications Platform software specification, it says, and supports MHP and ATVEF standards efforts.

The standards program includes subcommittees and groups working on data standards, digital video, construction and maintenance, cable applications platforms and more.

Separately, in its annual report filed Friday for fiscal year 2001, ended May 31, Liberate notes its risks; it says it has a history of losses and expects to incur losses in the future. It also said it expects its operations to continue to produce negative cash flow in the near term.

While its existing cash balance is more than enough to meet working capital and capital expenditure needs for "at least the next 12 months," if it needs to raise more in the future, "We cannot be certain that we will be able to obtain additional financing on favorable terms, or at all," it says. Without that, the company may not be able to develop its products and services, acquire technology or businesses, open new offices, hire or keep employees or meet competitive or business requirements, it adds.

Liberate counters that such language is standard for a 10-K filing.

A Liberate spokesman also says that as of May 31, 2001, the company "had cash, cash equivalents, short-term and long-term investments of $451 million. Liberate has given guidance to Wall Street indicating that its cash burn rate will approximate $22 million to $25 million for the upcoming quarter and decline as Liberate approaches profitability. Therefore, Liberate has ample cash on hand to reach profitability and beyond."

A spokesman adds that it expects to achieve profitability on a pro forma basis, excluding the impact of special charges, sometime during the first half of its fiscal year 2003, or approximately the second half of calendar year 2002.

On June 29, Liberate reported its revenue for the 12 months ended May 31 were $51.7 million, up 85 percent over the $28.0 million for a comparable period a year ago. Its net loss for the year reached $306.4 million, or $2.99 a share.


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