Auditing

Cardinal to Delay Filing Annual Report

ClearOne Communications and Intelligroup will also have to put off reporting because of restatements.
Stephen TaubSeptember 28, 2004

To give its audit committee more time to finish an internal review, Cardinal Health, Inc. will delay filing its 10-K for the fiscal year ended June 30, according to the embattled pharmaceutical-distribution giant.

Cardinal is now shooting for late October for the release of the annual report. As a result of this delay, the company will also put off its annual meeting from Nov. 3 to a date following the filing of its 10-K as soon as possible.

In May, the SEC converted an informal probe of Cardinal into a formal investigation of its financials. Earlier this month, the company announced that it would restate its results for 2001, 2002, and 2003 as well as the first three quarters of fiscal 2004. It also said its financials “should no longer be relied upon.”

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The U.S Attorney for the Southern District of New York is also investigating how the company classifies its revenue, according to the Associated Press.

Cardinal is not, however, the only company currently reauditing its financials to recently announce a reporting delay. ClearOne Communications Inc, for instance, reported last week that it would delay the filing of its restated 2001, 2002, and 2003 results.

“While we have made substantial progress on our audits, we will not be in a position to file with the SEC by the end of September as originally estimated,” said Don Frederick, CFO of ClearOne.

The company said its independent accounting firm, KPMG LLP, is in the process of re-auditing ClearOne’s 2001 and 2002 financial statements.

Further, one-time high-flier Intelligroup, Inc. announced last Friday that it would restate its financials for the last three years. As a result, it will once again delay the filing of its second-quarter 10-Q.

The provider of IT outsourcing services said the restatement is based on preliminary results of an ongoing review. Until its completes this review, it won’t be able to come up with precise figures for the revisions.

In August, the company received a delisting notice from Nasdaq because it didn’t file its second quarter results in time. It promised to file by Sept. 17. Two weeks ago, however, Intelligroup warned that it would not meet the new Sept. 17 deadline for filing its second-quarter results.

At the time, it said that a more comprehensive review of its quarterly results is taking longer than anticipated.

Intelligroup’s stock sank about 32 percent on Monday’s news, closing at $1.13. In early 2000, it traded in the 40s.