CHARLTON, Mass., Aug. 14 /PRNewswire-FirstCall/ -- FiberCore, Inc.
(OTC Bulletin Board: FBCE.OB), a leading manufacturer and global supplier of
optical fiber and preform for the telecommunication and data communications
markets, today announced that it will not be filing its second quarter 10-Q in
accordance with SEC reporting requirements. Instead, the Company plans to
submit its second quarter financial results, which will not be reviewed by its
independent auditors, in the form of an 8-K filing as soon as possible after
August 15, 2003.
By failing to file a 10-Q in accordance with SEC requirements, the Company
will not be in compliance with the listing requirements of the OTC-Bulletin
Board, which will result in the Company's shares being delisted from the
Bulletin Board. In anticipation of that event, the Company has started the
process necessary to facilitate the trading of its shares on the "pink
sheets." However, no assurance can be given that the Company's shares will be
quoted in the "pink sheets" or there will not be a break in trading activity
during the process.
Concurrently, the Company is seriously considering filing a Form 15 in
order to deregister its common stock with the SEC. Filing a Form 15
immediately relieves the Company of its obligation to file certain reports and
forms, including Forms 10-K, 10-Q, and 8-K with the SEC as well as other
reporting requirements. If a Form 15 were filed, the Company expects that
deregistration would become effective within 90 days.
Dr. Mohd Aslami, President and CEO stated, "The economic argument against
being a reporting company is quite compelling, given the costs, both direct
and indirect, in connection with preparing and filing these reports; the
substantial increase in costs associated with being a reporting company in
view of new regulations resulting from Sarbanes-Oxley; the collapse of the
Company's market valuation; and other related factors."
"On associated matters, the Company has just begun settlement talks with
Shin-Etsu with respect to its recent arbitration award. However, no assurance
can be given that a settlement will be reached, and the Company has not yet
secured new financing, in part owing to the Shin-Etsu award. In addition, the
Company was just recently sued for $400,000. The suit, which alleges that a
commission was earned in the summer of 2002 in connection with a tender offer,
is totally baseless. Nonetheless, the liquidity situation continues to
deteriorate, raising the possibility of an insolvency filing," added Dr.
Aslami.
FiberCore, Inc. develops, manufactures, and markets single-mode and
multimode optical fiber preforms and optical fiber for the telecommunications
and data communications markets. In addition to its standard multimode and
single-mode fiber, FiberCore also offers various grades of fiber for use in
laser-based systems up to 10 gigabits/sec, to help guarantee high bandwidths
and to suit the needs of Feeder Loop (also known as Metropolitan Area
Network), Fiber-to-the Curb, Fiber-to-the Home and Fiber-to-the Desk
applications. Manufacturing facilities are presently located in Jena, Germany
and Campinas, Brazil.
For more information about the Company, its products, or shareholder
information please visit our Website at: http://www.FiberCoreUSA.com or contact us
at: Phone - 508-248-3900 or by FAX - 508-248-5588 or E-Mail:
sales@FiberCoreUSA.com ; investor_relations@FiberCoreUSA.com
Except for the historical matters discussed above, the statements in this
press release are forward looking and are made pursuant to the "safe harbor"
provisions of the Private Securities Litigation Reform Act of 1995. They are
based on the Company's current expectations and are subject to a number of
risks and uncertainties. Actual results may differ materially from those
projected as a result of certain general economic and business conditions;
loss of market share through competition; introduction of competing products
by other companies; changes in industry capacity; pressure on prices from
competition or from purchasers of the Company's products; availability of
qualified personnel; the delivery of an ability to commission new equipment as
scheduled; ability to obtain required financing; dependence on a limited
number of raw material suppliers; the loss or reduced creditworthiness of any
significant customers; and other factors detailed from time to time in the
Company's filings with the Securities and Exchange Commission.
SOURCE FiberCore, Inc.
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Related links:
http://www.FiberCoreUSA.com
CONTACT:
Dr. Mohd A. Aslami, President-CEO, or John D.
Ronnquist, Interim CFO of FiberCore, Inc., +1-508-248-3900
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