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. . . Based on the information presented to the Company's Audit Committee to date, the Company believes it is very likely that it will restate its audited financial statements for each of the fiscal years ending December 31, 1997, 1998 and 1999, and its unaudited financial statements for the subsequent interim periods. While the overall impact of the various possible adjustments to the financial statements cannot be determined at this time, those adjustments could have a material adverse effect on the Company's balance sheet as well as on the revenue and net income recognized by the Company during certain fiscal periods. Because KPMG LLP has only recently been retained, the Company also cannot fairly estimate the amount of the required adjustments that it expects to be made to its financial statements. Revised financial statements of the Company for the affected periods will be issued as soon as possible. . . .
From one of the submitted letters:
In this circumstance, we are required to inform you that appropriate disclosure consists of the notification by Vari-L that the financial statements for the years ended December 31, 1997, 1998 and 1999 and our related reports ARE NOT to be relied upon. This notification should be made to persons known to be relying on the Company's financial statements or who are likely to rely on the financial statements and related auditors' reports.
For the foregoing reasons, Haugen, Springer & Co., P.C. hereby formally resigns as auditor for the Company.
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