Del Global Technologies has finally reported its fiscal 2001 results, following delays associated with an extensive auditing review. For the period (end-July 28), the Valhalla, NY-based vendor had revenues of $93 million, with a net loss of $8.5 million. Del has not yet reported the final fiscal results for 2000.
As it seeks to emerge from the difficulties of recent years, Del continues to feel the effects of past events. The firm remains under investigation by the Securities and Exchange Commission, which began an investigation in December 2000 in connection with previously issued financial statements. Del said it continues to cooperate fully with the SEC, but can't predict the duration of the investigation or the outcome.
In litigation developments, Del filed a complaint in February against former CEO Leonard Trugman alleging numerous acts of securities law violations, fraud, breaches of fiduciary responsibility, and corporate mismanagement. The lawsuit is ongoing.
Del hopes to reapply for listing its common stock on a national stock exchange, and is working to complete SEC-audited financial results for the previous three years and balance sheets for the previous two years -- required for a listing application. Del's stock was delisted from the Nasdaq National Market in December 2000.
Looking ahead, Del said that it expects fiscal 2002 sales to be in the range of $97 million to $100 million. The firm expects a net loss, due principally to expenses associated with final settlement of the class-action lawsuit.
Del has also announced the signing of a commitment letter to establish a new $10 million senior revolving credit facility. The new credit facility will replace a credit facility from Del's existing bank.
By AuntMinnie.com staff writers
April 2, 2002
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