Commenting further, Andrews said, "Given the current uncertainty surrounding the credit markets and our need for access to working capital to support our continued rapid growth, we were pleased to gain access to the capital necessary to enable us to continue to execute our plan. The new Safeguard credit line, along with our renewed facility with Comerica Bank, puts us on solid financial footing from which we can embark on the launch of our new breast cancer test. Based on our improvement in gross margins in 2007, our current commercial growth and our ongoing expense management, we believe we should be able to reduce our operating losses during 2008, which in turn should reduce the amount of additional funds we will need to draw from our newly negotiated line of credit."
The financial results described above reflect the impact of the adjustment to bad debt expense described above, as well as an aggregate $950,000 adjustment to reduce revenue (and record a corresponding liability) that the Company has made to its consolidated financial statements (allocated over a period of multiple quarters) resulting from the Company's analysis of financial information provided to the Company from its third party billing vendor relating to certain credit balances. As a result of matters identified in connection with the Company's year-end financial statement preparation process, management has identified material weaknesses in the Company's internal control over financial reporting. Additional details relating to these material weaknesses and the above-referenced adjustments will be included in the Company's Form 10-K for the fiscal year ended December 31, 2007 to be filed with the Securities and Exchange Commission.
|SOURCE Clarient, Inc.|
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