PictureTel’s Survival in Doubt, Auditor Says

PictureTel Corp., a maker of videoconferencing systems, may not be able to stay in business because it has been incurring losses and lacks additional financing, according to its auditor, PricewaterhouseCoopers. PictureTel said its plan for 2000 had included forecasted revenue from new products being developed with Intel Corp. The auditors, however, said they cannot count on future revenue from those and other new products and services in evaluating the company, PictureTel said in a filing with the Securities and Exchange Commission. Andover, Mass.-based PictureTel said it finished the first quarter with more than $50 million in cash and is in negotiations to obtain more funding for the next year. PictureTel shares fell 75 cents to close at $5.31 on Nasdaq, before news of the filing was released.