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Excite future in doubt
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August 20, 2001: 1:58 p.m. ET
Excite@Home says it may not have enough cash to last the year
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NEW YORK (CNNfn) - Broadband Internet company Excite@Home said it may not have enough cash to last the year, especially if its stock is delisted from the Nasdaq.
Excite@Home (ATHM: down $0.39 to $0.48, Research, Estimates) said in an amendment to its annual report filed with the Securities and Exchange Commission Monday its "existing cash and other liquid assets may not be sufficient to fund operations through the end of 2001."
"These conditions raise substantial doubt about our ability to continue as a going concern," the company said. "We cannot guarantee that we will be able to obtain additional funding on acceptable terms, if at all."
Independent auditors Ernst & Young LLP reached the same conclusions, which were also published in the filing.
The main concern is that if Excite@Home's stock is delisted – the company currently does not meet Nasdaq's requirements – the company's $100 million convertible notes will require accelerated cash repayments.
The company said it already has cut 290 jobs and may look to restructure further. It also is looking to sell its media operations.
AT&T (T: up $0.05 to $19.37, Research, Estimates) holds a 23 percent stake in the company and has a 74 percent voting stake.
Standard & Poor's said it cut Excite@Home's corporate credit rating to "CCC" from "B-minus," and $937 million of convertible subordinated debt to "CC" from "CCC." The new ratings are, respectively, four and two notches above default. 
-- from staff and wire reports
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