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Strategies & Market Trends : Sharck Soup -- Ignore unavailable to you. Want to Upgrade?

To: Jim Spitz who wrote (29054)	6/22/2001 8:25:51 AM
From: Jim Spitz	Read Replies (1) \| Respond to of 37746

Chronimed says sales were overstated by up to $7 million; stock could be delisted Friday, June 22, 2001 Minnetonka-based Chronimed Inc. said Thursday that it overstated revenue by up to $3 million in its fiscal 2000, which ended in June, and by up to $4 million for the first three quarters of the current fiscal year as result of accounting errors in its retail pharmacy business. CEO Henry Blissenbach told analysts that the "worst case" would be a 15 cents per-share adjustment to earnings for fiscal 2000 and 20 cents per share in the current fiscal year -- adjustments that would reduce earnings substantially for both periods. Chronimed previously reported fiscal 2000 earnings from continuing operations of $3.3 million, or 27 cents a share, and revenue of $225.9 million. Previously reported earnings from continuing operations for the three quarters of this fiscal year were $3.1 million, or 25 cents a share, and sales were $212.2 million. The drug distribution company also said it would take up to a $7 million one-time charge in its fourth quarter ended June 29 to address doubtful accounts discovered in the course of its review of the retail pharmacy business's financial procedures. Trading in Chronimed stock was suspended June 14 by the Nasdaq when the company said it had overstated revenue by a then-undetermined amount. Trading will resume today under the symbol CHMDE. However, the company has been told that it is subject to delisting as a result of the inaccurate financial filings. Company and Nasdaq officials are scheduled to meet July 19 to discuss the matter. -- Terry Fiedler © Copyright 2001 Star Tribune. All rights reserved.