NEW YORK, April 7 (GenomeWeb News) - Orchid Cellmark will restate its earnings for the second and third quarters of 2005 due to a non-cash, non-operating income event during the second quarter, the company said today.
Also, the company has received a delisting warning from Nasdaq for failing to file a financial statement on time, and that its shares will be delisted at the start of business on April 12, according to a filing with the US Securities and Exchange Commission.
Orchid will restate its earnings due to a settlement of escrow claims associated with its December 2001 acquisition of Lifecodes. The 163,259 shares of the company's common stock received from this settlement, valued at $1.6 million, should have been recorded at the settlement date as a non-operating gain and an acquisition of treasury stock, Orchid said.
The restatement will neither impact the company's cash flow nor have a negative effect on its fiscal year 2005 results.
On April 3, Orchid received a delisting warning from Nasdaq because it failed to file its annual report by the extended deadline of March 31. The company has requested a hearing wirth the Nasdaq listing qualifications panel to appeal the delisting notice.
Orchid said it intends to provide its earnings for the fourth quarter and full year 2005, and file its annual report, "at the earliest possible date."