A Diagnostics & Imaging Week
Inverness Medical Innovations (Waltham, Massachusetts), a manufacturer of rapid diagnostic products, reported finding that its financial statements for FY04, and for the second, third and fourth quarters of 2004 and first quarter of 2005, contain errors relating to revenue recognition.
The company said it determined that "certain customers" of one of its diagnostics divisions were provided "return or exchange rights" in connection with the sale of products, and that those revenues should not have been recognized upon shipment to the customers under generally approved accounting practices.
These orders resulted in revenues of about $4.2 million during 2004 and $570,000 during 1Q05. Inverness said it is continuing to evaluate the transactions completed in 2004 to determine which of the quarters during 2004 are impacted. The company said it also is evaluating transactions from prior periods.
With completed evaluation, Inverness said it will file restated financials for the second, third and fourth quarters of 2004, the full year ended Dec. 31, 2004, the quarter ended March 31, 2005, and any other quarters so required.
The company bills itself as a leading developer of "advanced diagnostic devices" and that it is exploring new applications for its electrochemical and other technologies, including immuno-diagnostics, with a focus on women's health and cardiology.