SYRACUSE, N.Y., Jan. 26 /PRNewswire-FirstCall/ -- Anaren, Inc.
(NASDAQ:ANEN) today reported that it has completed its final review
of the inventory valuation error the Company reported on December
1, 2006. The inventory valuation error, which was caused by an
incorrect modification of a computer formula used to report the
material component of work-in-process inventory, resulted in an
overstatement of the Company's inventory and pretax income at
September 30, 2006, which was initially estimated to be in the
range of $750,000 to $850,000. After completion of its final
review, the Company has determined that the cumulative
overstatement of inventory at September 30, 2006 was $782,500,
within the range previously estimated. Of this amount, $477,091
represents a first quarter fiscal 2007 overstatement of inventory
and pretax income and $305,409 relates to the fiscal year ended
June 30, 2006. It has also been determined that $290,883 of the
$305,409 overstatement in fiscal year 2006 occurred in the second
quarter ended December 31, 2005, the quarter in which the formula
was incorrectly modified. Management, after consultation with the
Company's Audit Committee and independent registered public
accounting firm, KPMG LLP, now believes that the $290,883
overstatement is material to the second quarter of fiscal 2006.
Therefore, the Company is restating the previously filed financial
statements for the fiscal 2006 second quarter ended December 31,
2005, the fiscal year ended June 30, 2006, and the first quarter of
fiscal 2007 to correct these errors, and these financial statements
should no longer be relied upon. (Logo:
http://www.newscom.com/cgi-bin/prnh/20021022/NYTU197LOGO ) The
Company also reported today that upon further and final review of
the June 30, 2006 financial statements it was determined by the
Company, after consultation with KPMG LLP, that the currency
translation portion of the gain on the final closure and
liquidation of the Company's discontinued Netherlands operations
should have been recorded in the fiscal year 2004 results of
operations. The Company, in consultation with KPMG LLP, had
previously recorded the gain in the third quarter ended March 31,
2006 results of operations. Accordingly, these financial statements
should no longer be relied upon. This gain from discontinued
operations of $735,464 is therefore being moved from the June 30,
2006 Consolidated Statement of Operations to the June 30, 2004
Consolidated Statement of Operations. The Company, on December 1,
2006 also reported an immaterial tax error originating in fiscal
year 2006, which was initially corrected in the first quarter of
fiscal 2007 and is now being corrected in the fiscal year 2006
financial statements. The full year overstated tax benefit in
fiscal year 2006 was $159,000. Income from continuing operations,
net income from discontinued operations and net income as restated
and previously reported for the effected periods is as follows:
Fiscal Years Ended June 30, 2006 2004 Previously Previously
Reported Restated Reported Restated Income from continuing
operations $11,349,278 $11,016,869 $7,666,814 $7,666,814 Net income
from discontinued operations 817,177 81,713 290,314 1,025,778 Net
income $12,166,455 $11,098,582 $7,957,128 $8,692,592 Diluted income
per share Income from continuing operations $0.64 $0.62 $0.35 $0.35
Net income from discontinued operations $0.05 $0.01 $0.01 $0.05 Net
income $0.69 $0.63 $0.36 $0.40 Three Months Ended September 30,
2006 March 31, 2006 December 31, 2005 Previously Previously
Previously Reported Restated Reported Restated Reported Restated
Income from cont ops $3,960,769 $3,760,678 $3,214,178 $3,170,604
$2,229,965 $2,010,082 Net income from disc ops - - 817,177 81,713 -
- Net in- come $3,960,769 $3,760,678 $4,031,355 $3,252,317
$2,229,965 $2,010,082 Diluted income per share Income from cont ops
$0.22 $0.21 $0.18 $0.18 $0.13 $0.11 Net income from disc ops $ - $
- $0.05 $0.00 $ - $ - Net income $0.22 $0.21 $0.23 $0.18 $0.13
$0.11 Previously, on December 1, 2006, the Company reported that
management had concluded the Company's disclosure controls and
procedures were not effective due to a material weakness in the
Company's program change controls related to its work-in-process
inventory system at September 30, 2006. After further review,
management has now concluded that because the $290,883
overstatement is material to the second quarter ended December 31,
2005, and due to a material weakness in internal control over
financial reporting related to accounting for foreign currency
translation adjustments for discontinued operations, the Company's
disclosure controls and procedures were not effective for the
periods ending December 31, 2005, March 31, 2006 and June 30, 2006.
Therefore, management's report on Controls and Procedures included
in the Company's Quarterly Reports on Form 10-Q for the periods
ending December 31, 2005, March 31, 2006, and Management's Report
On Internal Control Over Financial Reporting included in the Annual
Report on Form 10-K for the fiscal year ended June 30, 2006, should
no longer be relied upon. As soon as practicable, the Company will
file all required amendments to the quarterly and annual periods
impacted by these corrections and modifications with the Securities
and Exchange Commission. The Company has discussed its conclusions
regarding the restatement of the Company's financial statements and
the effectiveness of the Company's disclosure controls and
procedures with its independent registered public accounting firm,
KPMG LLP. Management continues to believe, as it previously
reported on December 1, 2006, that the programming error, which has
been corrected and appropriately tested, or any other accounting
issue identified in this announcement will not impact the Company's
second quarter fiscal year 2007 results. The Company will report
fiscal year 2007 second quarter results on Thursday, February 1,
2007, which are expected to be within the range of guidance
previously provided by management. 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 regarding the nature and scope of the
Company's accounting errors and the effectiveness of its disclosure
controls and procedures, statements relating to the Company's
restatement of its financial statements, statements relating to the
expected impact of the restatements 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 timing and
content of the Company's restatements of financial statements and
the need for any follow-on actions in connection with the Company's
accounting practices, previously filed financial statements, and
the impact of the Company's anticipated restatements and the
reaction to them from the Company's stockholders 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 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/NYTU197LOGO
http://photoarchive.ap.org/ DATASOURCE: Anaren, Inc. CONTACT:
Joseph E. Porcello, VP of Finance of Anaren, Inc., +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