Alere Expects to Restate Financial Results
July 14 2016 - 7:00PM
Dow Jones News
Alere Inc., which previously disclosed revenue-recognition
issues in Africa and China, expects to determine that it had
material weakness in its internal controls and plans to restate
certain results.
The health-care diagnostics company said in March that it was
looking into revenue cutoff issues for 2013 through 2015. On
Thursday, the company said incorrect revenue timing mostly involved
transactions in Africa in which it recognized revenue when the
product shipped to the distributor, and "bill and hold"
transactions in China.
Alere said the effect of the misstatements "is not expected to
be material" but "expects that the cumulative effect of reflecting
these misstatements in the current year would be material" to
2015.
Less than three months after Abbott Laboratories announced a
$5.8 billion deal to buy Alere, the deal was in jeopardy. Alere
said in late April that it rejected an offer of up to $50 million
by Abbott to terminate their agreement.
In March, Alere disclosed it received a subpoena regarding a
foreign corruption investigation over payments in Africa, Asia and
Latin America.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
July 14, 2016 18:45 ET (22:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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