Orthofix to restate past financials on revenue snafu | Wall Street Beat

August 7, 2013 by Brad Perriello

Orthofix delays filing its 2nd-quarter financials and says it will restate its books for the past 2 years due to improperly recognized revenues.

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Orthofix (NSDQ:OFIX) said an audit of its books is prompting it to restate its financial results for 2011, 2012 and Q1 2013 after discovering revenues that were improperly recognized.

The ongoing review by the Orthofix board of directors' audit committee means the Lewisville, Texas-based orthopedics company will be late in filing its results for the 2nd quarter, according to regulatory filings.

Orthofix said that "certain revenues recognized during 2011 and 2012, upon further evaluation, should not have been recognized or should not have been recognized during the periods in which they were recognized," according to the filings.

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"Management continues to assess the company’s disclosure controls and procedures and internal control over financial reporting for current and prior periods. Management does not expect to reach a final conclusion on the effectiveness of the company’s internal control over financial reporting and disclosure controls and procedures until completion of the restatement process, but expects to report in future or amended filings the existence of 1 or more material weaknesses in the company’s internal control over financial reporting relating to the restatement," according to the filings.

Orthofix said it doesn't know when the audit will be finished or when it expects to release its new financials.

The news sent OFIX shares down 3.2% to $23.09 each as of about 12:45 p.m. today.