GSI Group Inc. to Restate Financial Results for 2007
February 02 2009 - 8:45AM
PR Newswire (US)
BEDFORD, Mass., Feb. 2 /PRNewswire-FirstCall/ -- GSI Group Inc.
(NASDAQ: GSIG), a supplier of precision technology and
semiconductor systems, today announced that it has identified
revenue recognition errors related to the incorrect timing in the
recognition of revenue from multi-element sales transactions to
certain customers in its Semiconductor Systems Segment during 2007.
The Audit Committee of the Board of Directors of GSI Group has
concluded that the range of potential adjustments resulting from
the identified errors is material to the 2007 interim and annual
historical financial statements of GSI Group. As a result, the
Audit Committee has determined that GSI Group's previously issued
interim and annual historical financial statements for 2007 should
no longer be relied upon. Further, GSI Group announced that
substantially all amounts due from customers associated with these
transactions have been paid and substantially all of the customer
obligations associated with these 2007 transactions have been
fulfilled. Based on the current status of the Audit Committee's
review, the Company disclosed that it does not currently expect
that its cash position will be materially impacted by the
correction of these accounting errors. GSI Group also announced
that its Audit Committee, with the assistance of independent legal
counsel and forensic accountants, is continuing its review of
transactions in its Semiconductor Systems Segment and other sales
transactions that contain arrangements with multiple deliverables
for 2007 and 2008 and has expanded the scope of its review to
include fiscal year 2006. The Audit Committee's review is ongoing
and additional adjustments to GSI Group's historical financial
statements may be required as a result of the review. About GSI
Group Inc. GSI Group Inc. supplies precision technology to the
global medical, electronics, and industrial markets and
semiconductor systems. GSI Group Inc.'s common shares are listed on
Nasdaq (GSIG). Forward Looking Information Certain statements in
this release are "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995 and are based
on current expectations and assumptions that are subject to risks
and uncertainties. All statements contained in this press release
that do not relate to matters of historical fact should be
considered forward-looking statements. These forward-looking
statements include statements regarding the qualitative and
quantitative effects of the restatement, the periods covered by the
restatement, the nature of the Audit Committee's review and any
anticipated conclusions of GSI Group, its Audit Committee or
management, and other statements that are not historical facts.
These forward looking statements are subject to risks,
uncertainties and changes in financial condition, unknown factors
and other items described in GSI Group's annual report on Form 10-K
for the fiscal year ended December 31, 2007 and the quarterly
reports on Form 10-Q filed with the Securities and Exchange
Commission. Such statements are based on management's beliefs and
assumptions and on information currently available to GSI Group's
management. Actual results may differ materially from the
preliminary expectations expressed or implied in these
forward-looking statements due to various risks, uncertainties or
other factors, including the outcome and results of the review by
the Audit Committee and GSI Group's independent registered public
accounting firm. GSI Group disclaims any obligation to update any
forward-looking statements as a result of developments occurring
after the date of this document. For more information contact:
Sergio Edelstein, GSI Group Inc., 1-781-266-5700. DATASOURCE: GSI
Group Inc. CONTACT: Sergio Edelstein of GSI Group Inc.,
+1-781-266-5700 Web Site: http://www.gsig.com/ Company News
On-Call: http://www.prnewswire.com/comp/107189.html
Copyright