DENVER, August 19, 2002 ? Qwest Communications International Inc. (NYSE: Q) said today that it has filed a current report on Form 8-K with the U. S. Securities and Exchange Commission that gives more detailed financial information regarding the company?s results for the second quarter of 2002 previously disclosed in the company?s press release on August 8, 2002. The Form 8-K is available on the SEC?s web site at www.sec.gov.
As disclosed in the company?s press release of August 8, 2002, the company expects to restate prior periods as a result of its determination that certain accounting policies and practices were inappropriately applied and certain transactions were recorded incorrectly. The company is continuing to analyze its accounting policies and practices in consultation with its new auditors, KPMG LLP. In addition, the company has underway a review of its internal controls. Qwest will attempt to conclude these analyses promptly. However, as a result of the change in auditors and the ongoing investigation by the U.S. Securities and Exchange Commission, the company cannot state with certainty when a restatement will be completed.
Accordingly, as previously disclosed, the company did not file its Form 10-Q for the second quarter of 2002. The company will file its Form 10-Q as soon as it has completed its analyses of its expected restatement of its financial statements. The Form 8-K is not intended as a substitute for the disclosure required by the Form 10-Q, but is intended to provide additional information regarding the company?s results of operations for the three and six months ended June 30, 2002, its financial condition and certain other matters.
Qwest Corporation, the company?s wholly owned subsidiary, will not file its quarterly report on Form 10-Q due today. As a result of the company?s ongoing analysis, it has not found that any of the disclosed misapplications of, or changes in, accounting policies require adjustments to the Qwest Corporation financial statements. However, until the company completes the analysis of the nature, scope and impact of any potential adjustments to the Qwest Corporation financial statements, KPMG cannot complete its review of the Qwest Corporation Form 10-Q for the second quarter. At this time the company has not quantified any potential adjustments, nor determined what period or periods may be impacted. The company is working with KPMG to complete its analysis as quickly as possible, and will promptly make appropriate disclosure and filings once the company has determined whether or not an adjustment is required and the scope and impact of any adjustment.
Qwest Communications International Inc. (NYSE: Q) is a leader in reliable, scalable and secure broadband data, voice and image communications for businesses and consumers. The Qwest Macro Capacity® Fiber Network, designed with the newest optical networking equipment for speed and efficiency, spans more than 175,000 miles globally. For more information, please visit the Qwest Web site at www.qwest.com.
This release may contain projections and other forward-looking statements that involve assumptions, risks and uncertainties. Readers are cautioned not to place undue reliance on these statements, which speak only as of the date of this release. These statements may differ materially from actual future events or results. Readers are referred to the documents filed by Qwest Communications International Inc. (together with its affiliates, ?Qwest?, ?we? or ?us?) with the Securities and Exchange Commission (the ?SEC?), specifically the most recent reports which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements, including but not limited to: the duration and extent of the current economic downturn in our 14-state local service area, including its effect on our customers and suppliers; the effects of our anticipated restatement of historical financial statements including delays in or restrictions on our ability to access the capital markets or other adverse effects to our business and financial position; our substantial indebtedness, and out inability to restructure our $3.4 billion credit facility prior to failing to comply with financial covenants contained therein or any inability to complete efforts de-lever our balance sheets through asset sales of other transactions; any adverse outcome of the SEC?s current inquiries into Qwest?s accounting policies, practices and procedures; any adverse outcome of the Capital U. S. Attorney?s Office in Denver current investigation into certain matters relating to us; adverse results of increased review and scrutiny by Congress, regulatory authorities, media and others (including any internal analyses) of financial reporting issues and practices or otherwise; the failure of our chief executive and chief financial officers to provide certain certifications relating to certain public filings; rapid and significant changes in technology and markets; failure to achieve the projected synergies and financial results expected to result from the acquisition of U S WEST, and difficulties in combining the operations of the combined company; our future ability to provide interLATA services within our 14-state local service area; potential fluctuations in quarterly results; volatility of Qwest?s stock price; intense competition in the markets in which we compete; changes in demand for our products and services; dependence on new product development and acceleration of the deployment of advanced new services, such as broadband data, wireless and video services, which could require substantial expenditure of financial and other resources in excess of contemplated levels; higher than anticipated employee levels, capital expenditures and operating expenses; adverse changes in the regulatory or legislative environment affecting our business; adverse developments in commercial disputes or legal proceedings; and changes in the outcome of future events from the assumed outcome included by Qwest in its significant accounting policies. The information contained in this release is a statement of Qwest?s present intention, belief or expectation and is based upon, among other things, the existing regulatory environment, industry conditions, market conditions and prices, the economy in general and Qwest?s assumptions. Qwest may change its intention, belief or expectation, at any time and without notice, based upon any changes in such factors, in Qwest?s assumptions or otherwise. The cautionary statements contained or referred to in this release should be considered in connection with any subsequent written or oral forward looking statements that Qwest or persons acting on its behalf may issue. This release may include analysts? estimates and other information prepared by third parties for which Qwest assumes no responsibility. Qwest undertakes no obligation to review or confirm analysts? expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
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