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Palo Alto, CA.,
04/22/05
Digital Video Systems, Inc., said today that its Annual Report on Form 10-K for the year ended December 31, 2004 includes a going concern qualification.
Nasdaq rules require a listed company to publicly announce if its annual report includes an audit opinion containing a “going concern” – that is, a paragraph from the company’s independent accountants expressing substantial doubt as to the company’s ability to continue to meet its obligations over the next 12 months.
DVS said the reasons cited by its auditors, Stonefield Josephson, Inc., for the going concern paragraph include that DVS has suffered recurring losses from operations and has a working capital deficiency and deficit in stockholders' equity, that raise substantial doubt about the ability to continue as a going concern.
DVS Chairman and CEO Tom Spanier commented, "We are taking steps to address our current financial situation, and we continue to believe we will be successful."
Safe Harbor Statement under the Private Securities
Litigation Reform Act of 1995
Any statements made in this release that
are not historical facts contain forward-looking information that
involves risks and uncertainties. These forward-looking statements
include, but are not limited to, statements regarding the strategic
direction of DVS and DVS Korea, the benefits resulting from a change
in management, DVS’s products and its market position and
business activities proposed for India. Important factors that may
cause actual results to differ include, but are not limited to,
the timely availability of components, sufficiency of working capital,
the impact of competitive products and services, the company's ability
to manage growth and acquisitions of technology or businesses, the
effect of economic and business conditions, and other risks detailed
from time to time in the company's filings with the Securities and
Exchange Commission. Digital Video Systems, Inc. assumes no obligation
to update these forward-looking statements, and does not intend
to do so.
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About
DVS
Established in 1992, DVS is a publicly held company specializing in the development and application of digital video technologies enabling the convergence of data, digital audio, digital video and high-end graphics. DVS is headquartered in Palo Alto, California, with subsidiaries and manufacturing facilities in South Korea and China and a subsidiary in India. Additional information may be obtained at www.dvsystems.com.
For additional information please contact:
Digital
Video Systems, Inc.
430 Cambridge Ave., Suite 110,
Palo Alto, CA 94306
Tel: 650.322.8108
Fax:650.322.8109
DVS
Contact:
Larissa Licea
Office: 650.322.8108 X106
Cell: 408-712-4165
E-Mail:
ir@dvsystems.com
Investor Relations Contact:
Sean Collins, Partner
CCG Investor Relations
(818) 789-0100, ext. 202.
E-Mail:
sean.collins@ccgir.com
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