Del Global Technologies announced that its net income for the fiscal year (ended July 29) will be substantially lower than for the previous year and it expects to revise its quarterly and fiscal 2000 results. The company will delay filing its form 10-K
Del Global Technologies announced that its net income for the fiscal year (ended July 29) will be substantially lower than for the previous year and it expects to revise its quarterly and fiscal 2000 results. The company will delay filing its form 10-K with the Securities and Exchange Commission and is reviewing whether it will also be required to restate fiscal 1999 results.
The news prompted a stockholder class lawsuit against Del Global in the New York District Court, claiming that the company disseminated false and misleading information about its financial condition, overstating revenue and net income in earlier quarterlies.
On Nov. 6, with filing of the lawsuit, the Nasdaq exchange halted trading of Del Global stock at $8.63.
Complaints of this kind occur when a company is alleged to have filed false or incomplete financial information or has withheld important information, according to an attorney involved in this type of action.
Del Global expanded this year by acquiring control of the Italian company Villa Sistemi Medicali. The FDA granted Del Global approval in June to market Villa Sistemi's Vision tilting table for radiographic and fluoroscopic examinations (SCAN, 6/21/00).
And in August, Del Global Technologies signed a distribution agreement with the European Distribution Organization to sell Del Global's medical imaging in Poland, the Czech Republic, the Slovak Republic, Hungary, Greece, Romania, Turkey, Bulgaria, Yugoslavia, Russia, and others in the Commonwealth of Independent States (SCAN, 8/2/00).
Del Global chairman and CEO Leonard Trugman could not be reached for comment.
Del Global manufactures medical imaging systems and subsystems, including stationary and portable radiography/fluoroscopy, mammography, and neonatal imaging systems. Its subsystems include power conversion and noise suppression subsystems for medical and industrial applications. The company's subsidiaries include Universal, DynaRad, Bertan High Voltage, and Gendex-Del.