The news out of Marlborough, Massachusetts-based fault-tolerant Unix systems builder Sequoia Systems Inc continues to get worse, and the company now says that its audited financial results for the year to June 30 will reflect total revenues of about $65.7m as opposed to the $71.0m previously reported, and that the decline in reported revenues will cause the loss for the year to be significantly higher than the previously reported loss of $860,025. The change in the results is because the company and its auditors discovered that, based on information that has recently come to their attention, payment for about $5.3m in equipment orders from a foreign government agency, recorded in the third quarter of fiscal 1992, will not be forthcoming on the schedule expected. While Sequoia is optimistic that payment will ultimately be received, the uncertainty has led it and its auditors, in completing the year-end audit, to keep it out of the figures until the picture becomes clearer. And in case anyone thought that that was the end of the bad news, the company says that it expects that its revenue for the first quarter to September 27 will be below analyst’s expectations and that it will incur a loss for the quarter. Perhaps the one piece of good news is that Kent R Allen, chief financial officer of the company, has resigned to pursue other interests: put most diplomatically.
