PolyMedica warns may revise 2002, 2003 results
LOS ANGELES, June 30 (Reuters) - Medical products maker PolyMedica Corp. (PLMD.O) said on Monday it may need to expense past costs for consumer advertising, a change that would result in lower profits for fiscal 2002 and 2003 as well as first quarter 2004.
The Woburn, Massachusetts-based company, known for its Liberty brand of diabetes testing supplies, said it is still discussing the issue with the U.S. Securities and Exchange Commission, which has questioned PolyMedica's policies for capitalization and amortization of advertising costs related to the acquisition of new customers.
The company's shares, which fell 72 cents to close at $45.79 on Nasdaq, traded as low as $35.00 after hours on Instinet.
If the company were to make the revisions, income per share before cumulative effect of change in accounting principle for fiscal years 2003 and 2002 would be $2.61 and $1.76, respectively, compared with the previously reported $3.21 and $2.38.
In addition, under historical expensing of advertising costs, PolyMedica said earnings per share guidance for its fiscal 2004 first quarter ending June 30, would be 66 cents to 72 cents, compared with previous guidance of 84 cents to 90 cents.
A spokeswoman for PolyMedica said the company routinely discloses in SEC filings and on conference calls its method for amortizing advertising expenditures as well as how its results would be affected if the costs were expensed at the time they were incurred.
The company said it is continuing to cooperate with an ongoing U.S. Department of Justice investigation into alleged health care fraud within the Medicare plan for the elderly, but there has been no resolution of the probe. |
