Speedcast provides satellite communications services to remote sites such as cruise ships, mining operations and oil rigs. It also counts the NBN as a significant customer.
The board said it had prepared the accounts on an ongoing basis on the assumption that Speedcast would succeed with its forbearance agreement, required funding and recapitalisation, but noted “there is no guarantee that all of these initiatives will be achieved”.
The company has stated previously that Moelis is advising it on funding and recapitalisation alternatives given the fact that current equity market conditions preclude a meaningful equity raising.
The debt-laden company’s shares remain suspended until accounting firm Pwcompletes the audit of this result which has been under board scrutiny since a profit downgrade last month which triggered the resignation of its chief executive Pierre-Jean Beylier.
Speedcast said last week that the virus has had a “substantial impact” on one of its core markets, cruise liners, and as a result the company was “not yet able to provide a reliable outlook for the performance of the business” for the current financial year, which ends on December 31.
On Monday the company said it was seeing virus-related impacts across a range of customers and business segments.
The company also said the Australian Securities and Investments Commission (ASIC) had forced the company to restate its previous year’s revenue meaning the prior year’s $US1.9 million net profit is a $US6.8 million loss.
“Speedcast has agreed to change its accounting policy and restate the FY18 comparatives in this financial report in line with ASIC’s interpretation,” the company said in a note to its accounts.
“The restatement does not impact the total amount of revenue that will be recognised by the company, and that the company will receive under the contracts, but simply the timing of the recognition of the revenue.”