The Regents - University of California | Office of The President
The Regents - University of California | Office of The President
The Regents - University of California | Office of The President
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In our opinion, based on our audit and the report <strong>of</strong> the<br />
other auditors, the financial statements referred to above<br />
present fairly, in all material respects, the financial<br />
position <strong>of</strong> MCI WORLDCOM, Inc. and subsidiaries as<br />
<strong>of</strong> December 31, 1999 and 1998, and the results <strong>of</strong> their<br />
operations and their cash flows for each <strong>of</strong> the years in<br />
the three-year period ended December 31, 1999, in<br />
conformity with accounting principles generally<br />
accepted in the United States.<br />
58. On March 29, 2000, Andersen also gave its written consent for its<br />
report being included in WorldCom’s 10-K, Registration Statements and other<br />
documents filed with the SEC.<br />
E. 2000 Financial Statements<br />
1. First Quarter 2000<br />
59. On April 27, 2000, WorldCom issued a Press Release reporting its<br />
First Quarter 2000 financial results. <strong>The</strong> Company represented it had:<br />
[S]trong pr<strong>of</strong>itability gains in first quarter 2000 driven by robust data,<br />
Internet and international revenues and declining access and<br />
technology costs. For the quarter ending March 31, 2000, earnings<br />
before goodwill amortization (cash earnings) increased 59 percent<br />
year-over-year to $1.6 billion, or $0.54 per common share. Net<br />
income increased 80 percent to $1.3 billion, or $0.44 per common<br />
share.<br />
<strong>The</strong> Press Release also provided Management’s Comments on the First<br />
Quarter Results:<br />
“WorldCom continues to enjoy success in its focus<br />
markets. On an annualized basis, data, Internet and<br />
international services represent more than $18 billion <strong>of</strong><br />
annualized revenues growing at 32 percent,” said<br />
Bernard J. Ebbers, president and CEO <strong>of</strong> WorldCom.<br />
“We are clearly leading the communications industry<br />
into a new era dominated by data- and Internet-based<br />
services, and our newly announced generation d<br />
initiatives leverage our existing strengths.”<br />
60. In its May 15, 2000 filing with the SEC for the First Quarter <strong>of</strong> 2000<br />
ended March 31, 2000, WorldCom made the following representations about its<br />
operations, including revenues and income:<br />
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COMPLAINT
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