This excerpt taken from the COMS 10-Q filed Apr 5, 2005.
We have incurred significant net losses in recent fiscal periods, including $137 million for the first three quarters of fiscal 2005, and $349 million, $284 million and $596 million for fiscal years 2004, 2003 and 2002, respectively, and we may not be able to return to profitability.
We incurred a net loss of $137 million for the first three quarters of fiscal 2005, and net losses of $349 million, $284 million and $596 million for fiscal 2004, 2003 and 2002, respectively. Although we are taking steps designed to improve our results of operations, we cannot assure you that we will return to profitability.
We have faced a number of challenges that have affected our operating results during the current and past several fiscal years. Specifically, we have experienced, and may continue to experience, the following:
declining sales due to price competition and reduced incoming order rate;
increased risk of excess and obsolete inventories;
operating expenses that, as a percentage of sales, have exceeded our desired financial model; and
disruptions resulting from our workforce reductions and employee attrition.