SAN FRANCISCO, March 11 /PRNewswire-FirstCall/ -- PlanetOut Inc. , a leading media and entertainment company exclusively focused on the gay and lesbian market, announced today that the audit report contained in its Annual Report on Form 10-K for the year ended December 31, 2008, which was filed with the Securities and Exchange Commission ("SEC") on March 4, 2009, included an explanatory paragraph from PlanetOut's independent registered public accounting firm expressing substantial doubt about PlanetOut's ability to continue as a going concern due to its continuing net losses and accumulated deficit. Pursuant to Nasdaq Market Place Rule 4350(b)(1)(B), any company whose securities are listed on one of the Nasdaq stock exchanges that receives an audit opinion expressing doubt about the ability of the company to continue as a going concern, must make a public announcement through the news media disclosing the receipt of such an opinion.
As a result of recent operating losses, PlanetOut has carefully assessed its anticipated cash needs and adopted an operating plan to manage the costs of its capital expenditures and operating activities along with its revenues. As part of this plan, PlanetOut reduced its workforce by approximately 33% on January 16, 2009. In addition, as previously announced, on January 8, 2009, PlanetOut entered into a merger agreement with Here Media Inc. and certain other parties, and this transaction is anticipated to be completed during the second quarter of 2009.
If the proposed business combination is not completed, PlanetOut has adopted an operating plan, including further cost reductions, to manage the costs of its capital expenditures and operating activities along with its revenues in order to meet its working capital needs for the next twelve months.
This announcement does not represent any change or amendment to PlanetOut's fiscal 2008 financial statements or to its Annual Report on Form 10-K for the year ended December 31, 2008.
About PlanetOut Inc.
PlanetOut Inc. is a leading media and entertainment company exclusively serving the lesbian, gay, bisexual and transgender (LGBT) community. PlanetOut's digital media brands include two of the longest-established LGBT sites on the Web, gay.com and PlanetOut.com - both of which are known for their robust online communities as well as their entertainment, news, fitness, health, style, and travel content. PlanetOut is based in San Francisco. For more information, please visit http://www.planetoutinc.com/.
Forward-Looking Statements
In addition to the historical information contained herein, this press release contains forward-looking statements, including statements regarding the proposed business combination and the timing thereof, and PlanetOut's operating plan and cost-saving efforts, as well as statements containing the words "believes," "anticipates," "expects," and similar words. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the timing of regulatory and stockholder approvals, the limited operating history and variability of operating results of PlanetOut; PlanetOut's ability to achieve its operating plan; competition; timing of product launches; success of marketing efforts; and dependence on technology infrastructure, and the Internet. Additional information concerning factors that could affect PlanetOut's future business and financial results is included in PlanetOut's Annual Report on Form 10-K for the year ended December 31, 2008 and other public filings filed from time to time with the SEC, which are available at the SEC's website at http://www.sec.gov/.
