Auditors Raise Doubts on Iwerks’ Viability

Auditors for Iwerks Entertainment Inc. have raised substantial doubt about the company’s ability to continue as a going concern, according to its annual report. Shares of the Burbank-based entertainment company were down 13 cents to close at 44 cents on the Nasdaq Small-Cap Market. The company said its independent auditors cited such factors as significant operating losses and a large accumulated deficit, while noting that Iwerks’ financial condition continues to worsen. The report, for the period ended June 30, was filed with the Securities and Exchange Commission. Iwerks also said it lost $6.53 a share in fiscal 2000, compared with a loss of $1.37 a share in fiscal 1999.