GSI Group Reports Additional Progress on Revenue Recognition Review and Nasdaq Hearing
June 30 2009 - 4:54PM
PR Newswire (US)
BEDFORD, Mass., June 30 /PRNewswire-FirstCall/ -- GSI Group Inc.
(Nasdaq: GSIG, the "Company") today announced that the Company's
evaluation of sales transactions of its Semiconductor Systems
Segment during fiscal years 2004 through 2008 is nearing
completion, and reported approximate ranges of restated revenues
for that segment during each of those five fiscal years. Based on
preliminary results of its evaluation, the Company anticipates that
the following Semiconductor Systems revenues will be moved from the
indicated periods to later periods: Approximate Amount of
Semiconductor Systems Revenues to be Moved to Later Period Periods
Year Ended December 31, 2004 $15 to 17 million Year Ended December
31, 2005 $20 to 22 million Year Ended December 31, 2006 $50 to 52
million Year Ended December 31, 2007 $54 to 56 million Year Ended
December 31, 2008 $16 to 18 million The revenues to be moved
represent errors in the timing of revenue recognized from multiple
element transactions. Substantially all amounts due from customers
associated with these transactions have been paid and the Company's
cash position has not been materially impacted by the correction of
the accounting errors. The Company is currently completing the
determination of the appropriate periods in which the revenues
should be recognized based upon delivery of the final element in
the sales arrangement. The actual amount of revenues that will move
to later periods may differ from the amounts shown above. The
Company also announced today that it is currently reviewing the
timing of revenue recognized in connection with multiple element
arrangements in its Precision Technology Segment from 2004 through
2008 to determine if adjustments need to be made to those periods.
Substantially all amounts due from customers associated with the
transactions being reviewed have been paid. On May 19, 2009, the
Company announced that the Company's Audit Committee of the Board
of Directors (the "Audit Committee"), with the assistance of its
independent legal counsel and forensic accounting firm, had
concluded its previously announced review of sales transactions in
the Company's Semiconductor Systems Segment and other sales
transactions that contain arrangements with multiple deliverables,
for fiscal years 2006, 2007 and 2008. At that time, the Company
also announced that it was evaluating the results of the Audit
Committee's review, and that it was also reviewing sales
transactions of its Semiconductor Systems Segment made during
fiscal years 2004 and 2005 to determine if adjustments need to be
made to those periods. The Company also announced today that on
June 11, 2009, it appeared before the Nasdaq Listing Qualifications
Panel (the "Panel") and appealed the staff determination notice
(the "Delisting Notice") it recently received from The Nasdaq Stock
Market ("Nasdaq"). The Company requested that the Panel stay the
delisting of the Company's common stock to allow the Company
additional time to file its Quarterly Report on Form 10-Q for the
three month period ended September 26, 2008 and its Quarterly
Report on Form 10-Q for the three month period ended April 3, 2009
(the "Quarterly Reports") and its Annual Report on Form 10-K for
the year ended December 31, 2008 (the "Annual Report"). The Company
expects that Nasdaq will make a determination within approximately
thirty days after the date of the hearing. No such determination
has yet been communicated to the Company. On May 19, 2009, the
Company announced that it had been granted a hearing before the
Panel on June 11, 2009 to appeal the Delisting Notice it had
received from Nasdaq stating that the Company's common stock is
subject to delisting since the Company is not in compliance with
the filing requirements for continued listing as set forth in
Nasdaq's listing rules. Safe Harbor and 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 news release that do not relate to matters of historical fact
should be considered forward-looking statements, and are generally
identified by words such as "expect," "intend," "anticipate,"
"estimate," "plan," and other similar expressions. These
forward-looking statements include, but are not limited to,
statements related to: ranges of Semiconductor Systems revenue for
2004-2008; the prior review of the Semiconductor Systems segment by
the Company's Audit Committee and the results of that review;
completion of the restatement of the Company's financial results
for fiscal years 2006, 2007 and 2008; the delisting proceedings
with Nasdaq, the Company's efforts to obtain a stay thereof and the
Company's expectations regarding receipt of a determination from
Nasdaq; and other statements that are not historical facts. These
forward looking statements contain estimates and involve a number
of risks, uncertainties, assumptions and other factors that could
affect future results and cause actual results and events to differ
materially from historical and expected results and those expressed
or implied in the forward looking statements, including, but not
limited to, the following: the highly unpredictable nature of the
semiconductor and electronics materials processing industry;
deteriorating market conditions; the effect of the current
financial and economic crises on credit markets, financial
institutions, customers, suppliers and consumers; the Company's
ability to manage its significant indebtedness in light of current
economic and business conditions; the potential results of any
restructuring of outstanding indebtedness including the issuance of
a substantial amount of equity securities in exchange for a portion
of such indebtedness and the dilutive impact of such issuance, the
renegotiation of the terms of indebtedness that remains outstanding
or the incurrence of additional material obligations as part of any
such restructuring; the Company's ability to reduce operating
expenses and achieve anticipated cost reductions and savings; the
Company's ability to grow and increase profitability; future
liquidity and valuation of auction rate securities; changes in
accounting standards; failures of the Company to properly identify
the timing of when revenue should be recognized; the Company's
ability to quickly increase manufacturing capacity and promptly
respond to fluctuating product demands; the Company's need to
invest in research and development; the Company's ability to
develop and deliver new competitive technology and enhancements and
customer acceptance thereof; failure to identify and manage
weaknesses in internal controls; the effects of competition; risks
related to consolidation of operations and the integration of
operations and employees of acquired businesses, including Excel;
the Company's inability to recognize synergies of acquired
businesses, including Excel; the completion and outcome of the
Company's financial restatements and review of financial results;
the Company's ability to complete and file its delayed periodic
reports with the SEC on a timely basis; the Company's ability to
meet the requirements for continued listing of the Company's shares
on Nasdaq; and the risks of existing and future litigation and
governmental or other regulatory inquiry or proceedings arising out
of or related to the Company's revenue recognition practices. Other
important risk factors that could affect the outcome of the events
set forth in these statements and that could affect the Company's
operating results and financial condition are discussed in the
Company's Annual Report on Form 10-K for the year ended December
31, 2007 and in the Company's subsequent filings with the SEC made
prior to or after the date hereof. Such statements are based on the
Company's management's beliefs and assumptions and on information
currently available to the Company's management. The Company
disclaims any obligation to update any forward-looking statements
as a result of developments occurring after the date of this
document. The unaudited financial information presented in this
press release is subject to change based on, among other factors,
the completion of the work attendant to the restatement of the
Company's financial statements and the completion of its delayed
periodic reports herein discussed. The information included in this
press release is not intended as and should not be viewed as a
substitute for full financial statements. For more information
contact: GSI Group Inc. Investor Relations Telephone: 781-266-5137
Email: DATASOURCE: GSI Group Inc. CONTACT: GSI Group Inc. Investor
Relations, +1-781-266-5137, Web Site: http://www.gsig.com/ Company
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