CellStar Announces Further Delay in SEC Filing
May 26 2005 - 6:24PM
PR Newswire (US)
CellStar Announces Further Delay in SEC Filing CARROLLTON, Texas,
May 26 /PRNewswire-FirstCall/ -- CellStar (NASDAQ:CLSTE), a
value-added wireless logistics services leader, today announced
that it will be unable to file its Form 10-K for fiscal 2004 by May
31, 2005 as previously announced. The Audit Committee of the
Company's Board of Directors needs more time to complete its
independent review of certain accounts receivable and revenue
issues in the Asia Pacific Region. As a result of the delay, the
Company expects to be delisted from The Nasdaq National Market. The
Company's common stock may be quoted in the Pink Sheets, which
provide electronic quotation information. However, the Company can
give no assurance the common stock will be so quoted. Also, as a
result of not filing its Form 10-K for fiscal 2004 by May 31, 2005,
the Company will be in violation of its secured domestic revolving
credit facility. The Company has talked to Wells Fargo Foothill and
requested an extension to file its Form 10-K, but there can be no
assurance that the waiver will be granted. The Company has retained
the services of Raymond James & Associates, Inc. to act as its
investment banking advisor to assist the Company with the
evaluation of its financial and strategic alternatives. About
CellStar Corporation CellStar Corporation is a leading global
provider of value-added logistics services to the wireless
communications industry, with operations primarily in the North
American, Latin American and Asia-Pacific regions. CellStar
facilitates the effective and efficient distribution of handsets,
related accessories and other wireless products from leading
manufacturers to network operators, agents, resellers, dealers and
retailers. CellStar also provides activation services in some of
its markets that generate new subscribers for wireless carriers.
Additional information about CellStar may be found on its Web site
at http://www.cellstar.com/ . This news release contains
forward-looking statements, as defined in the Private Securities
Litigation Reform Act of 1995. A variety of risk factors, including
the Company's ability to implement its business strategies, to
maintain its channels of distribution, continue to secure an
adequate supply of competitive products on a timely basis and on
commercially reasonable terms, improve its operating margins,
secure adequate financial resources, maintain an adequate system of
internal control, comply with debt covenants, and continually turn
its inventories and accounts receivable, as well as changes in
foreign laws, regulations and tariffs, new technologies, system
implementation difficulties, competition, handset shortages or
overages, terrorist acts, a decline in consumer confidence and
continued economic weakness in the U.S. and other countries in
which the Company does business and other risk factors, are
discussed in the Company's Annual Report on Form 10-K and most
recent Quarterly Report on Form 10-Q. Any one, or a combination of
these risk factors could cause CellStar's actual results to vary
materially from anticipated results or other expectations expressed
in the Company's forward-looking statements. DATASOURCE: CellStar
Corporation CONTACT: Sherrian Gunn of CellStar Corporation,
+1-972-466-5031, or Web site: http://www.cellstar.com/
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