ADAC Laboratories to restate past results
MILPITAS, Calif., Dec 29 (Reuters) - ADAC Laboratories Inc. said Tuesday it would restate financial results for the fiscal years 1996, 1997 and 1998 because of questions about its accounting principles that surfaced when it issued fiscal 1998 results in November.
ADAC, a specialist in planning and information systems for nuclear medicine and radiation therapy, said the restatements are expected to lower the results it reported for fiscal 1996 and 1997, and may affect the net income reported for fiscal 1998, which ended Sept. 27. The audit is not expected to have a material effect on revenues for fiscal 1998 but may have a substantial effect on revenues recorded in individual quarters, ADAC said.
Pricewaterhouse Coopers is continuing a review of ADAC's accounting practices, particularly the treatment of one-time charges and the recognition of expenses and revenues, according the company. As part of the restatement, ADAC said it will adjust the timing of certain revenues over the 1996-1998 period, moving them into adjacent future periods. Following the review, ADAC will change its accounting procedures, the company said.
ADAC did not file its annual report on Form 10-K on Monday and has applied for an extension. ADAC said the accounting changes would not have a material impact on business prospects and it remains confident of long-term growth prospects.
For fiscal 1998 the company reported net income of $29 million, or $1.42 per share, excluding one-time charges, on revenues of $323.4 million. For fiscal 1997 it posted net income of $22.5 million, or $1.16 per share, excluding one-time charges, on revenues on $282.3 million. For fiscal 1996 it recorded net income of $16.6 million, or $0.90 per share, on revenues of $240.8 million. |
