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Total Number of Pages: 3
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report: November 24, 1998
Commission File Number: 0-23289
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HYBRID NETWORKS, INC.
(Exact name of Registrant as specified in its Charter)
DELAWARE 77-0252931
(State of Incorporation) (I.R.S. Employer
Identification No.)
6409 Guadalupe Mines Road
San Jose, California, 95120
(Address of principal executive offices)
(408) 323-6500
(Registrant's telephone number)
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ITEM 4. CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT.
On November 24, 1998, Arthur Andersen LLP ("AA") resigned as the
independent public accountants of Hybrid Networks, Inc. (the "Company").
In August 1998, the Company had engaged AA as the Company's independent
public accountants to audit the financial statements of the Company as of
December 31, 1997.
AA informed the Company's management and the audit committee of the
Company's board of directors that, in AA's view, material weaknesses
existed in the Company's internal controls of a nature that prevented AA
from being able to form an opinion on the Company's conclusions as to the
appropriate timing and amount of revenue recognition for the purposes of
the Company's financial statements for the year ended December 31, 1997.
During the course of its work, AA had notified the Company and
discussed with the audit committee AA's conclusion that (i) it needed to
expand significantly the scope of its audit, which it did with the
approval and cooperation of the Company, its board of directors and the
audit committee, and (ii) while AA did not complete an audit of any
financial statements of the Company, the 1997 financial statements
included in the Company's Form 10-K filed with the Securities and
Exchange Commission were materially misstated. There were no
disagreements between AA and the Company on any matter of the Company's
accounting principles or practices, financial statement disclosure or
auditing scope or procedure.
The Company intends to restate its financial statements pursuant to
its internal review and has taken steps to engage another independent
public accountant to complete the audit of its financial statements in
the near future. The Company has authorized AA to respond fully to
inquiries of the successor accountants concerning all matters relating to
the Company and its financial statements.
ITEM 5. OTHER EVENTS
Hybrid Networks, Inc. Issued the following press release.
NASDAQ DELISTS HYBRID NETWORKS SECURITIES
San Jose, Calif., December 1, 1998 - Hybrid Networks, Inc. (NASDAQ:
HYBRE - news) announced today that the company's securities will be
delisted from the Nasdaq Stock Market effective with the close of
business December 1, 1998.
Hybrid said it will re-apply for listing on Nasdaq once the company
has re-audited financial statements available and has satisfied all other
listing requirements. The company noted that there can be no assurance
that the application will be accepted.
Hybrid Networks, Inc., based in San Jose, California, is a
broadband access equipment company that designs, develops, manufactures
and markets cable and wireless systems that provide high speed access to
the Internet and corporate intranets for both businesses and consumers.
Hybrid's customers include cable operators, broadband wireless systems
operators, Internet Service Providers, resellers and other businesses.
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ITEM 7. EXHIBITS.
16.1 Letter From Arthur Andersen LLP.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
HYBRID NETWORKS, INC.
Dated: December 2, 1998
/s/ Carl S. Ledbetter
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Carl S. Ledbetter
Chairman and Chief Executive Officer
Exhibit 16.1
December 2, 1998
Office of the Chief Accountant
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Dear Sir/Madam:
We have read Item 4 included in the Form 8-K dated December 2, 1998 of
Hybrid Networks, Inc. to be filed with the Securities and Exchange
Commission and are in agreement with the statements contained therein.
Very truly yours,
/s/ Arthur Andersen LLP
cc: Mr. Judson Goldsmith, CFO, Hybrid Networks, Inc.
