ADAC postpones release of Q2 numbers

Nuclear medicine vendor ADAC Laboratories continues to be plagued by accounting snafus. The Milpitas, CA, company announced May 19 that it will delay the release of its financial results for the second quarter (end-April) as it evaluates whether to establish additional reserves and one-time charges. The additional reserves are for lower results in Europe and Latin America, while the company did not indicate the reason for the additional charges.

ADAC has been struggling with accounting problems since late 1998, when it announced that it would have to restate revenues for the past three years (SCAN 12/16/98). The news prompted the filing of a half-dozen shareholder lawsuits and caused investors to dump ADAC shares. Last week’s news only exacerbated the situation: ADAC shares were trading at about $8.25 on May 20, down almost 14%.

© 1999 Miller Freeman, Inc.All rights reserved.

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