MiniScribe, a troubled Longmont, Colo., computer disk-drive maker formerly headed by Quentin T. Wiles of Sherman Oaks, disclosed last week that its debt exceeded its assets by $88 million as of July 2.
The company, which previously said its financial statements for 1985 through 1988 were inaccurate because of widespread fraud at the firm, also said it expects to report losses for the third and fourth quarters of 1989.
MiniScribe appeared to be a fast-growing, successful company after Wiles, a former turnaround specialist for the San Francisco-based investment firm Hambrecht & Quist, became MiniScribe's chairman in 1985. But the company reported its first loss in more than three years in the fourth quarter of 1988, and Wiles resigned his posts at MiniScribe and Hambrecht & Quist in February. A report prepared by MiniScribe's new management found that massive fraud had occurred during Wiles' tenure, including falsified shipments and doctored accounting records.
MiniScribe, which trades on the National Assn. of Securities Dealers, also said it filed a status report with the NASD detailing its efforts to meet listing requirements. The company was previously granted an exception to the NASD's $375,000 minimum capital and surplus requirements.
The company said corrected financial statements for 1985 through 1988 would be completed by the end of this month.