PET imaging services provider Molecular Imaging reported fiscal second-quarter revenues of $5 million, down 10.6% compared with the $5.6 million posted in the same period a year ago.
The San Diego-based firm attributed approximately 75% of the revenue decline to many of its customers choosing to buy FDG direct from third-party suppliers, instead of including the FDG in the price of the service. The company did not release profitability figures for the quarter (end-December 31), pending additional review by the firm's new independent auditors Mayer Hoffman McCann.
Mayer has questioned whether the accounting treatment used by Molecular Imaging since 1999 with respect to its equipment leases was appropriate. If it ultimately is determined that the prior accounting treatments were incorrect and different accounting treatments are appropriate, a restatement of certain prior periods may be required, Molecular Imaging said.
The accounting treatments under review do not involve any fraud of wrongdoing, Molecular Imaging said. As the possible accounting issues involve noncash items, any corrective action will not have an effect on cash flows, according to the firm.
By AuntMinnie.com staff writers
February 23, 2005
Related Reading
Molecular Imaging Q1 sales dip, November 23, 2004
Molecular Imaging taps CEO, posts 2004 loss, October 14, 2004
Molecular Imaging CEO resigns, September 20, 2004
Molecular Imaging, CCP sign distribution deal, August 24, 2004
Molecular Imaging nets Kaweah Delta, June 11, 2004
Copyright © 2005 AuntMinnie.com
