A Spate Of Bad News At Sequoia
Bad debts are plaguing Sequoia Systems, a Marlborough (Mass.) maker of fault-tolerant computers. On June 30, Sequoia said it will take a "substantial loss" in the latest quarter, in part because it had to write off an unspecified portion of its receivables.
The news follows by three weeks an announcement by Sequoia that the Securities& Exchange Commission is reviewing its accounting practices in connection with a$2.5 million sale to a government contractor. Sequoia says that it is cooperating withthe SEC. Also, a shareholder suit alleges that the company inflated its revenues and profits. Sequoia had no comment on the suit. The company's stock, which rose to 17 1/4 in January from a December low of 10 1/8, plummeted to 7 on the news.