Anaren Announces Inventory Valuation Error and Advises That 1st Qtr. Fiscal 2007 Financial Statements Will Be Restated
December 01 2006 - 8:07AM
PR Newswire (US)
SYRACUSE, N.Y., Dec. 1 /PRNewswire-FirstCall/ -- Anaren, Inc.
(NASDAQ:ANEN) today reported that due to a programming error, its
inventory and pretax income were overstated for the first quarter
of fiscal year 2007 ended September 30, 2006, and therefore
previously issued financial statements for the first quarter should
no longer be relied upon. The error resulted from an incorrect
modification of a computer formula used to report the material
component of work-in-process. Management discovered the error in
the course of integrating Company-wide work-in-process inventory
systems. Management has presented its preliminary findings to the
Company's audit committee and, in consultation with the audit
committee, will be continuing its review of the Company's
accounting for inventory, including work-in- process. Management
also has notified its independent registered public accounting
firm, KPMG LLP regarding this matter. (Logo:
http://www.newscom.com/cgi-bin/prnh/20021022/NYTU197LOGO ) Although
not finalized, management's preliminary assessment is that the
programming error resulted in an overstatement of the Company's
inventory and pretax income in the range of approximately $750,000
to $850,000 at September 30, 2006. Of this amount, approximately
$450,000 to $500,000 represents a first quarter fiscal 2007
overstatement and approximately $300,000 to $350,000 relates to
fiscal year 2006, ended June 30, 2006. If these preliminary
assessments are confirmed as the result of the Company's final
review, management currently anticipates that previously reported
net income for the three months ended September 30, 2006 of
$3,960,769, or $0.22 per diluted share, will be revised downward by
approximately $175,000 to $225,000, or $0.01 to $0.02 per diluted
share for the portion of the inventory adjustment applicable to the
first quarter of fiscal 2007, as well as an immaterial tax error
which the Company is also correcting. The fiscal 2006 adjustment is
considered by management to be immaterial to all periods and will
be corrected in prospective filings in fiscal 2007. Management has
concluded the Company's disclosure controls and procedures were not
effective due to a material weakness related to the Company's
internal control surrounding the accounting for work-in-process
inventory at September 30, 2006. The Company is currently
evaluating the impact, if any, to management's assessment of
internal control over financial reporting as of June 30, 2006. As
soon as practicable following the completion of its review, the
Company intends to announce its final conclusions regarding this
inventory valuation issue and, if necessary, file any required
amendments to its fiscal year 2007 filings with the Securities and
Exchange Commission. Management does not believe that the
programming error had a material impact on any periods prior to the
Company's current fiscal year 2007. Similarly, management believes
that the programming error, which has been corrected and
appropriately tested, will not impact the Company's second quarter
results, and management does not anticipate incurring extraordinary
current period charges associated with its accounting review and
any required restatement. This Release contains certain
"forward-looking statements" that are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. These "forward-looking statements" include, without
limitation, statements relating to the expected outcome of the
Company's ongoing review, statements regarding the anticipated
nature and scope of the Company's accounting errors, statements
relating to the anticipated timing of the Company's restatement of
its financial statements, statements relating the expected impact
of a restatement on the Company, and other statements of
management's opinion or expectations. These, and other
"forward-looking statements", are subject to business and economic
risks and uncertainties that could cause actual results to differ
materially from those discussed. Actual results may differ
materially due to, among other factors, the actual results of the
ongoing review into the Company's accounting errors, the actual
timing of the Company's restatement of financial statements and the
need for any follow-on actions in connection with the Company's
accounting practices, and the impact of the Company's anticipated
restatement and the reaction to it from the Company's stockholders
and customers and the financial markets in general, as well as
changes in economic, business, competitive, technological and/or
regulatory factors and trends. Unless required by law, Anaren
disclaims any obligation to update or revise any forward-looking
statement. Anaren will host a live teleconference, open to the
public, on the Anaren Investor Info, Live Webcast Website
(http://www.anaren.com/) and ccbn.com at
http://www.streetevents.com/ on Friday, December 1, 2006 at 9:00
a.m. EST. A replay of the conference call will be available at
11:00 a.m. (EST) beginning December 1, 2006 through midnight
December 4, 2006. To listen to the replay, interested parties may
dial in the U.S. at 1-888-203-1112 and international at
1-719-457-0820. The access code is 4299281. If you are unable to
access the Live Webcast, the dial-in number for the U.S. is
1-800-500-6404 and International is 1-719-457-2735. Anaren designs,
manufactures and sells complex microwave signal distribution
networks and components to the wireless communications, satellite
communications and defense electronics markets. For more
information on Anaren's products, visit our Website at
http://www.anaren.com/.
http://www.newscom.com/cgi-bin/prnh/20021022/NYTU197LOGODATASOURCE:
Anaren, Inc. CONTACT: Joseph E. Porcello, Sr. VP of Finance,
+1-315-432-8909 Web site: http://www.anaren.com/
Copyright
Anaren, Inc. (MM) (NASDAQ:ANEN)
Historical Stock Chart
From Jun 2024 to Jul 2024
Anaren, Inc. (MM) (NASDAQ:ANEN)
Historical Stock Chart
From Jul 2023 to Jul 2024