WARSAW, Ind., Oct. 4 /PRNewswire-FirstCall/ -- Symmetry Medical Inc. (NYSE: SMA), an independent provider of products to the global orthopedic device industry and other medical markets, announced today that the Audit Committee of its Board of Directors has initiated an independent review of apparent irregularities with respect to the Company's accounting policies and practices at its Sheffield, UK operating unit. The review follows a report by management earlier this week to the Audit Committee regarding apparent improper accounting activities at its Sheffield, UK operating unit. Based on the information reported by management, certain transactions at issue appear to have resulted in the overstatement of revenues by that unit dating back to 1999, well prior to the Company's acquisition of the Sheffield, UK operations in June 2003.
From its initial review, management estimates that the overstatement of revenue and income before taxes for the entire 9-year period amounts to approximately $12 million to $16 million. The impact to the financial statements of the Company for the period subsequent to its acquisition of the Sheffield unit in June 2003 through 2007 is yet to be determined.
The employees at the Sheffield, UK operating unit believed to be primarily involved in this activity, including the Senior Vice President for Europe, are either no longer with the Company or have been suspended pending the completion of the review.
Based on the information reported by management to date, the Audit
Committee believes that it may be necessary for the Company to restate its
financial statements for the periods subsequent to the date of the
Sheffield, UK acquisition. As a result, the Company's historic financia
|SOURCE Symmetry Medical Inc.|
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