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Here is the localbusiness.com archive:

http://www.localbusiness.com/Search/Results/1,1141,TPA,00.html?sText=sevu&submit.x=11&submit...

Newest article:

http://www.localbusiness.com/Story/0,1118,TPA_729247,00.html

SeaView restates earnings

INDUSTRIAL GOODS, LEISURE

By Bill Holland, LocalBusiness.com
Apr 17, 2001 12:27 PM ET

ST. PETERSBURG, Fla., April 17 (LocalBusiness.com) -- Restated sales and earnings figures filed by underwater camera maker SeaView Video Technologies show a drastic decline in the amount of actual revenue it earned. The company - which previously reported itself in the black - lost money in 2000.

The restated financial picture is the result of a new management team put in place last month, a team that included former PricewaterhouseCoopers accountant Doug Bauer as chief financial officer and former JC Penney executive George Bernardich as chief executive. The annual report states the revenue discrepancies were discovered by Bauer.

Company founder serving probation
Company founder Richard McBride stepped down as chief executive last month but remains the company's controlling shareholder. McBride is serving a six-year probated sentence for felony fraud from a 1998 case where his previous business used fake sales orders to bill customers.

SeaView's (OTC BB: SEVU) annual report, filed late Monday, restates the second and third quarter's sales figures downward by hundreds of percent.

Instead of the $1.5 million in second quarter sales the company reported for 2000's second quarter, SeaView now says it sold $335,120 worth of underwater cameras. Third quarter sales of $2.5 million were revised down to $212,592, a difference of 91 percent.

Booked orders prematurely
For the year, SeaView now says sales were $1.13 million with losses of $2.2 million, or 18 cents per share, a far cry from the $155,000 profits it previously had said it earned in the first nine months of 2000.

Sequentially, the annual report shows revenue dropped throughout the year, despite repeated company announcements of record sales volume.

The company explained the differences by saying it booked as revenue products that had been ordered but never sold. The company gave no explanation for the huge difference between products it said were ordered in the second and third quarters, but apparently never shipped.

Company executives did not return phone calls for comment Tuesday morning.

SeaView shares - which spent much of last year selling above $10 on the strength of glowing press releases predicting as much as $40 million in sales and erroneous financial figures supplied to investors and the SEC - gained 3 cents, 4 percent, to 80 cents per share in moderate trading Tuesday morning.

Those shares hit a 52-wwek low of 72 cents last month, struggling to regain ground in the face of heavy selling, including that many company insiders, over the past month.


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