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End of Meade

Started by MTCAWO, 01/22/2013 12:20PM
Posted 01/22/2013 12:20PM Opening Post
Just looked at Meade's FCC filing as of Jan. 14, 2013 and the management dues not expect the company to be able to maintain its current operation. " B. Liquidity
The Company has incurred significant recurring losses and negative cash flows from operations which have resulted in reduced liquidity and a weakened financial position as of November 30, 2012. The Company also has endured working capital problems caused by product development delays during the past twelve months. In addition, in January 2013, the Company’s largest customer, and one additional customer, notified the Company that they had unilaterally, and without prior notice, decided to indefinitely hold payment of approximately $0.6 million in accounts receivable, which will further reduce the Company’s already limited liquidity. Due to these issues, the Company’s management now believes substantial doubt exists about the Company’s ability to continue as a going concern and that it must modify the Company’s business model and operations to reduce spending to a sustainable level. Such actions could cause the Company to be unable to execute its business plan, take advantage of future opportunities, respond to competitive pressures or customer requirements. It may also cause the Company to delay, scale back or eliminate some or all of its research and development programs, seek opportunities in a strategic relationship or business combination, or to reduce or cease operations."
So, who still wants to buy a Meade???? What will happen if they go under possibly this year?
Posted 01/22/2013 01:28PM #1
Anthony Orzechowski said:

Just looked at Meade's FCC filing as of Jan. 14, 2013 and the management dues not expect the company to be able to maintain its current operation. " B. Liquidity
The Company has incurred significant recurring losses and negative cash flows from operations which have resulted in reduced liquidity and a weakened financial position as of November 30, 2012. The Company also has endured working capital problems caused by product development delays during the past twelve months. In addition, in January 2013, the Company’s largest customer, and one additional customer, notified the Company that they had unilaterally, and without prior notice, decided to indefinitely hold payment of approximately $0.6 million in accounts receivable, which will further reduce the Company’s already limited liquidity. Due to these issues, the Company’s management now believes substantial doubt exists about the Company’s ability to continue as a going concern and that it must modify the Company’s business model and operations to reduce spending to a sustainable level. Such actions could cause the Company to be unable to execute its business plan, take advantage of future opportunities, respond to competitive pressures or customer requirements. It may also cause the Company to delay, scale back or eliminate some or all of its research and development programs, seek opportunities in a strategic relationship or business combination, or to reduce or cease operations."
So, who still wants to buy a Meade???? What will happen if they go under possibly this year?

Whoa, hang on a sec. This is an indication of stress, not insolvency. A letter from their audit firm expressing doubts about them as a going concern would be something to get alarmed over, not this by itself.

I have not looked at their financial info, but this, by itself, is not an indication of an imminent shutdown.