Conference call info for newbies
1. PRGN's bank line of credit has been totally paid off, there is a zero balance.
2. They have $100 million in cash, and a convertible bonds debt totaling $270 million not due until 2007. The next interest payment on that debt is due May 15th (they didn't say how much the interest payment was). Other than that, PRGN HAS NO DEBT!
3. The change in auditors is not connected to the current problems. Anderson was replaced because they couldn't make the necessary deadlines. The accounting problems came to light later.
4. No current PRGN contracts are affected by the drop in stock price or accounting problems.
5. Don't even know if problems are related to PRGN or Remedy, but they occurred sometime between 2000 and 2002. Don't know the actual scope or magnitude, but could be as much as $100 million (maximum), initially booked as revenue, then written off later.
6. All Remedy executives are still with PRGN except one who left a year ago.
7. They are still selling off the Harbinger assets, which will raise additional capital (no idea how much). Should be receiving bids this week.
8. Comments from new CEO: "We will make it through these difficult times. Our focus is on making this company profitable."
9. One analyst ended his statement with, "I'm going to go buy another thousand shares", and another pointed out that Oracle went throught the same thing, it rebounded, and the new CEO (Ellison) made it a stronger company in the end. He added, "I hope the same thing happens here".
