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Technology Stocks : Vari-L (VARL) -- Ignore unavailable to you. Want to Upgrade?

To: akmike who wrote (2424)	7/10/2000 7:28:38 AM
From: Labrador	Respond to of 2702

Vari-L Auditor Resigns Amid Concerns of Misstatements By ALEXEI BARRIONUEVO Staff Reporter of THE WALL STREET JOURNAL DENVER -- Vari-L Co. said its auditor resigned amid concerns that the company's financial statements have been misstated. The maker of wireless-communications devices said Haugen, Springer & Co. resigned Wednesday, prompted by the company's decision to hire KPMG LLP to assist Vari-L's board in an internal investigation. The board, which began its internal investigation in the spring, decided that Haugen Springer, the company's longtime auditor, couldn't "effectively evaluate" past financial statements of Vari-L. In a July 5 letter to the company, Haugen Springer said the company's former controller had refused to meet with the firm. It went on to say Vari-L may have violated securities laws. "We have become aware of information indicating that an illegal act(s) has or may have occurred," the letter says. "I have no idea on this green earth what they are talking about," said Dave Sherman, the company's president and chief executive. Haugen Springer's resignation follows Vari-L's May 17 disclosure that it overstated fourth-quarter 1997 revenue by 32% and earnings by 24%. On May 24, Vari-L's controller, Sarah E. Hume, resigned. Ms. Hume couldn't be reached for comment. Michael Rasner, a shareholder, has sued the company in federal court in Denver, charging that it violated securities laws by issuing false financial statements and that top directors and officials, including Mr. Sherman, sold $11 million of their shares at inflated prices. Mr. Sherman declined comment on the suit. Trading was halted in Vari-L stock Thursday on the Nasdaq Stock Market. Mr. Sherman said Vari-L's board is continuing to investigate the company's financial statements from 1997 through 1999. Vari-L plans to release financial results for the quarter ended June 30 in mid-August. "There may be further adjustments, but I don't know the materiality of the adjustments if any," Mr. Sherman said. Write to Alexei Barrionuevo at alexei.barrionuevo@wsj.com