Digital x-ray and mammography vendor Fischer Imaging has postponed the release of its second-quarter 2002 earnings report. The Denver firm cited several reasons for the delay.
The firm has created a new division for its noncore digital radiography, electrophysiology, and x-ray product lines, and a complete restructuring, evaluation, and inventory review of these businesses is currently in progress. The company expects restructuring charges and a significant write-down in inventory following completion of this work, Fischer said.
The firm's accountant, Ernst & Young, was just hired in July after former accountant Arthur Andersen was unable to complete accounting work due to the closing of its Denver office. Ernst & Young has not yet had time to complete the accounting or review its predecessor's auditor work papers, and as a result has not completed its SAS-71 review procedures, Fischer said.
Fischer is still evaluating the appropriate accounting treatment of a favorable patent infringement settlement of $25 million awarded during the second quarter from Thermo Electron, the former parent of Trex Medical. Fischer and Thermo Electron earlier this year settled a suit in which Fischer claimed that a Trex biopsy device infringed on its patents. Fischer will also receive $7.2 million in installments from Thermo Electron over the next eight years.
The company said it will announce a new reporting date as soon as possible.
By AuntMinnie.com staff writersAugust 15, 2002
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