Par Pharmaceutical needs more time to restate
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- December
- 14
Par Pharmaceutical Companies Inc. said yesterday that it will need additional time to restate financial statements whose flaws it first disclosed in July.
The company is reviewing its financial statements for fiscal 2004, 2005, and the first quarter of 2006. Par said yesterday it found errors in its reserves for future product returns, chargebacks and rebates, and its restatement adjustments will reduce product revenues by $84 million through April 1, 2006.
Errors in inventory accounting will increase the cost of goods sold by about $9 million through that date, Par added. Another accounting issue related to a lease acquired in a business deal and certain other items will increase Par’s before-tax profits by about $2 million through April 1, 2006.In the second quarter of 2006, Par added, it will write off about $15 million in uncollectibles. An additional $4 million in inventory also will be written down.
A separate investigation by the law firm of Nixon Peabody found no evidence that the understatement of reserves and the uncollectible deductions were “anything but inadvertent,� the company said.The restatements aren’t expected to affect ongoing sales and operations, Par said. Yesterday’s statement did not say when the company expects to finish its review of its financials, and the numbers could continue to change.
Management will hold a conference call with analysts today at 9 a.m. Par has manufacturing and research operations in Chestnut Ridge.
This entry was posted
on Thursday, December 14th, 2006 at 7:13 pm by Jerry Gleeson.
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