Xybernaut Corp. (fka XYBR)

[cksla]

8/29/2002 Liberate Technologies stunned Wall Street analysts late Wednesday when it said it expects to generate one-half the amount of revenue this quarter than it had previously projected.

The interactive-TV-software vendor blamed the shortfall on capital-expenditure cuts by U.S. MSOs and debt restructuring at its key European customers -- NTL Inc., Telewest Communications plc and United Pan-European Communications N.V.

Liberate said it now expects to generate $12 million to $14 million in pro forma revenue for its fiscal first quarter, a huge drop from the $20 million to $22 million it had projected earlier. It also expects its net loss to be in the range of 12 cents to 19 cents per share, doubling previous guidance.

Liberate added that it will take a $2 million to $3 million restructuring charge. But the company maintained that it will reach 'pro forma profitability' during the second half of next year