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Portland, Ore. — Electro Scientific Industries Inc.'s audit committee has completed its review of certain accounting matters.
As a result of the review, the company intends to restate its financial statements for the fiscal year ended June 1, 2002, and the quarters ended August 31, 2002 and November 30, 2002, and to revise its announced results for the third fiscal quarter ended March 1, 2003.
Although the review conducted by the company's audit committee has been completed, the company's independent auditors have not yet completed their audit of fiscal year 2003, which ended May 31, 2003, nor have they completed their review with the company of the adjustments resulting from the audit committee's review. The completion of the fiscal year 2003 audit and review of the adjustments by the company's independent auditors could result in further restatement of the company's financial statements beyond those described below. The company plans to file an amended annual report on Form 10-K/A for the fiscal year ended June 1, 2002, amended quarterly reports on Form 10-Q/A for the fiscal quarters ended August 31, 2002 and November 30, 2002, and a quarterly report on Form 10-Q for the fiscal quarter ended March 1, 2003 after completion by the company's independent auditors of the audit of fiscal year 2003 and the independent auditors' review of the restatement adjustments, which the company expects will be concluded by August 11, 2003.
Currently, the company expects that its results for the fiscal year ended June 1, 2002 will be restated to increase the net loss of $16 million, or 58 cents per share, as previously reported in the company's annual report on Form 10-K filed August 20, 2002, to a net loss of $17.6 million, or 64 cents per share. It further expects that net sales will be reduced from $166.5 million, as previously reported, to $162.9 million. In addition, the company expects that the deferred revenue balance at June 1, 2002, will be increased from $1.9 million to $5.3 million.
The company also currently anticipates that its first quarter of fiscal 2003 will be restated to result in a net loss of $3.3 million, or 12 cents per share, and that its results for the second quarter of fiscal 2003 will be restated to result in a net loss of $13.2 million, or 48 cents per share. The company believes net sales will be reduced to $39.4 million in the first quarter and increased to $43.4 million in the second quarter.
ESI supplies high-value, high-technology manufacturing equipment to the global electronics market. For more information, visit www.esi.com.