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| 3D Systems Releases Restated Financial Statements 3D Systems has released its restated financial statements for the first and second quarters of 2006 and prior periods. Separately, the company also reported its operating results for the third quarter and first nine months of 2006. The company also filed its Quarterly Report on Form 10-Q for the quarter ended September 30, 2006 with the SEC today. As the company announced on December 14, 2006, it has restated its annual financial statements for its 2004 and 2005 calendar years. The effect of these restatements was to increase net income available to common stockholders in 2004 by $0.5 million, or $0.04 per share on a fully diluted basis, and to decrease net income available to common stockholders in 2005 by $0.7 million, or $0.05 per share on a fully diluted basis. These amounts are consistent with the expectations that the company announced last month. Each quarterly period in 2005 was also restated, and the effect of those restatements has been included in the 2005 operating results discussed below. The company has also restated its financial statements for the first two quarters of 2006. The effect of these restatements was to increase net loss available to common stockholders in the first quarter of 2006 by $0.7 million, or $0.05 per share, and to increase net loss available to common stockholders in the second quarter of 2006 by $2.6 million, or $0.16 per share. These amounts are also consistent with the expectations that the company announced last month. As the company previously disclosed, it identified the errors that led to these restatements in the third quarter of 2006. These errors primarily include errors in recording customer credits and deposits and to a lesser extent errors identified in reconciling fixed asset and construction-in-progress accounts and related depreciation and errors identified during the reconciliation of a number of income and expense accounts and accrued liabilities. As noted above, in the restatements, these errors primarily impacted the first and second quarters of 2006. Certain of the errors identified with respect to the 2004 and 2005 financial statements reflected the effect on those years of the 2006 errors that the company identified and the remainder of them primarily included unrelated previously unadjusted audit differences with respect to 2004 and 2005 that were evaluated when they were identified in prior periods and determined not to be material to the financial statements at that time. The company recorded these unadjusted differences in the restatement of the 2004 and 2005 financial statements. The company identified the errors in the 2006 financial statements primarily as a result of its efforts to remediate the material weaknesses that it previously identified and disclosed with respect to its second quarter 2006 financial statements as well as through its ongoing efforts to implement its new ERP system, to reconcile the records in its new ERP system and those in its legacy systems, and to test its internal controls in the context of the new ERP system environment. In connection with restating its financial statements, the company identified additional material weaknesses that it is working to remediate. These material weaknesses, and the actions the company is taking diligently to remediate them, are discussed in greater detail in the Quarterly Report on Form 10-Q that the company filed with the SEC today. The company encourages anyone who is interested in a detailed analysis of the restatement to read the company's Form 10-Q for the quarter ended September 30, 2006. To view the full news release, including operating results, please view thePDF version. write your comments about the article :: © 2007 Computing News :: home page |