Zomax Announces Preliminary Fourth Quarter Results
01 März 2005 - 10:08PM
PR Newswire (US)
Zomax Announces Preliminary Fourth Quarter Results Revenue Expected
to be Approximately $58.5 Million MINNEAPOLIS, MN, March 1, 2005
/PRNewswire-FirstCall/ -- Zomax Incorporated (NASDAQ:ZOMX), today
announced preliminary results for the fourth quarter ended December
31, 2004. The Company expects to report revenue of approximately
$58.5 million for the fourth quarter of 2004 and a net loss of
approximately $0.04 to $0.05 per share. The Company expects full
year 2004 revenues to be approximately $199 million and fully
diluted losses, including the effect of previously disclosed
litigation reserves and gains on the sale of available-for-sale
securities, to be approximately $0.25 to $0.26 per share. The
Company's fourth quarter 2004 results include a pre-tax charge of
$1.0 million, or $0.02 per share, relating to a previously
disclosed settlement offer made in connection with its pending
consolidated class action lawsuit. A portion of the settlement
offer includes the proposed issuance of Zomax securities. The
fourth quarter charge reflects the increase in share price from
September 24, 2004, when the initial reserve was established, to
December 31, 2004. There is no assurance that the final settlement
of this matter will not materially exceed the related reserves
established by the Company. Identified Accounting and Financial
Reporting Irregularities An internal review has identified
accounting irregularities at the Company's Zomax Ireland
subsidiary, Zomax Limited. The ongoing investigation has identified
a number of inappropriate accounting entries made by certain
members of the Ireland accounting organization. As a result, the
Company and its Audit Committee have concluded that the Company's
financial statements for the full year 2003, and for the first,
second and third quarters of 2004, should be restated and are
therefore no longer reliable. The Company expects to file restated
financial statements for the aforementioned periods as soon as
practical. The Company has communicated such conclusions with its
independent registered public accounting firm, Deloitte &
Touche, LLP. "The situation in Ireland is disappointing, as it mars
what would have been a good fourth quarter for Zomax. Our fourth
quarter 2004 results include a pre-tax loss of approximately $1.8
million, or $0.05 per share, relating to our operations in Ireland.
We have and will continue to make the necessary changes to our
Irish operating model to address this situation. Due to the
obscuring of the true operating results of Ireland, we were unable
to implement these changes in a more commensurate and timely
manner," said Anthony Angelini, President and CEO of Zomax.
Estimated Impact of Restatements Zomax currently estimates that the
restatements caused by the accounting irregularities at its Irish
subsidiary will negatively impact the previously reported net loss
for the full year 2003 by approximately $0.6 million or $0.02 per
share. However, the restatements do not negatively affect 2004
revenues, and revenues in 2003 are expected to slightly increase by
approximately $100,000. Estimates of the expected impact of the
restatements on the first three quarters of 2004 are as follows:
For the first quarter of 2004, the previously reported net loss is
expected to be negatively impacted by approximately $0.6 million,
or $0.02 per share; the net income previously reported for the
second quarter of 2004 is expected to be negatively impacted by
approximately $0.7 million, or $0.02 per share; and the previously
reported net loss for the third quarter of 2004 is expected to be
negatively impacted by approximately $0.5 million, or $0.02 per
share. As disclosed in the Company's Form 8-K filed on March 1,
2005, the Company has determined that as a result of the accounting
irregularities discussed above it has an internal control
deficiency that constitutes a material weakness as defined by the
Public Company Accounting Oversight Board's Auditing Standard No.
2. The Company will be making full disclosures with regard to its
assessment of internal controls in its 2004 Annual Report on Form
10-K. The Company intends to release its fully audited 2004 results
by March 30, 2005 and will subsequently host a conference call to
discuss the results. Conference Call Zomax will host a conference
call on Wednesday, March 2, 2005 beginning at 8:30 a.m. Eastern
Time (7:30 a.m. Central Time), to discuss the matters outlined in
this press release. To participate in this conference call, please
call 800.500.0311 and enter Code # 7744790. A replay of the
conference call will be available until midnight March 9, 2005 by
calling 719.457.0820 or 888.203.1112 and entering Code # 7744790.
The conference call will also be available by webcast. Participants
may log on to the webcast conference call by pre-registering at
http://www.zomax.com/ and clicking on the webcast link. About
Zomax: Zomax helps companies more efficiently bring their products
and content to market worldwide. Zomax' solutions enhance the
process of sourcing, production, and fulfillment through a modular
suite of supply chain services. These services include "front-end"
customer contact and e-commerce services, material management,
CD/DVD production, assembly and kitting services, JIT physical and
electronic fulfillment and returns management. Founded in 1993,
Zomax operates 11 facilities across the United States, Canada,
Mexico and Ireland. The Company's Common Stock is traded on the
NASDAQ Stock Market under the symbol "ZOMX". For more information
on Zomax, visit http://www.zomax.com/ or call (866) 553-9393. Safe
Harbor for Forward-Looking Statements Certain statements in this
press release relating to expected financial results for the fourth
quarter and full year 2004 and the restatement of financial
statements for prior periods are forward-looking statements and are
subject to risks and uncertainties. Actual results could differ
materially based on a number of factors including, but not limited
to, the timing and nature of the final resolution of the accounting
matters discussed in this press release and the Company's ability
to implement certain changes to its Zomax Ireland operations. Until
the restatement of the Company's financial statements for prior
periods has been completed, no assurance can be given with respect
to the financial statement adjustments, the impacts resulting from
such adjustments or the periods affected by such adjustments.
DATASOURCE: Zomax Incorporated CONTACT: Anthony Angelini, President
and CEO, or Rob Rueckl, Chief Financial Officer, both of Zomax,
Inc., +1-763-553-9300; or Investors-Media, Douglas Sherk, CEO, or
Chris Toth, Vice President, both of EVC Group, Inc.,
+1-415-896-6820 Web site: http://www.zomax.com/
Copyright
Zomax (NASDAQ:ZOMX)
Historical Stock Chart
Von Aug 2024 bis Sep 2024
Zomax (NASDAQ:ZOMX)
Historical Stock Chart
Von Sep 2023 bis Sep 2024