SEC launches probe of ADAC financials

ADAC Laboratories continues to deal with fallout from the restatement of its financial results for 1996, 1997, and the first three quarters of 1998. The Securities and Exchange Commission this month initiated a formal investigation of the company’s restatement.

News of the probe came out in ADAC’s annual 10-K report, filed with the SEC on Jan. 3. In the filing, ADAC stated that it is cooperating with the regulatory agency and that it cannot predict the outcome of the investigation.

In December 1998, ADAC announced that it would restate its financial results for the previous three years, provoking dramatic selling of its stock and shareholder lawsuits (SCAN 1/13/99). ADAC is contesting the suits, which were consolidated in April of last year.

In other ADAC news, the company’s HealthCare Information Systems (HCIS) division and Agfa have signed an OEM agreement under which ADAC will distribute Agfa’s ADC computed radiography systems and Drystar hardcopy printers with its Envoi RIS and PACS systems. The deal is part of ADAC’s effort to offer a comprehensive RIS/PACS product to its customers, according to the Milpitas, CA-based company.