Negative publicity over 10-K causes dip in Imnet revenues

Negative publicity over 10-K causes dip in Imnet revenues

Information systems developer Imnet Systems felt the effects of a delay in filing its year-end documents; the Atlanta-based vendor reported a 17% decrease in revenue for its 1998 fiscal first quarter.

For the period (end-September), Imnet had revenues of $8 million, compared with $9.7 million in the 1997 fiscal first quarter. Imnet posted a loss of $3.1 million, compared with earnings before non-recurring charges of $1.4 million in the same period last year. The company's backlog grew by $2.7 million to $53.7 million.

Chairman and CEO Kenneth Rardin attributed the figures to the company's inability to complete several significant new and add-on contracts due to negative publicity surrounding the delay in filing its 10-K. He said the company is unlikely to make up the revenue shortfall in the remaining nine months of the fiscal year.

After delaying the filing to allow its auditor KPMG Peat Marwick to complete the company's audit (PNN 10/97), Imnet filed its 10-K with the Securities Exchange Commission on Oct. 6 with no material adjustments made to its previously announced results.