Symmetry Medical down on news of accounting problems
Symmetry Medical Inc. (NYSE: SMA) shares are down after the maker of orthopedic devices reported after Thursday’s closing that its U.K.-based unit has overstated revenue numbers since 1999.
Symmetry, which acquired the Sheffield, U.K.-based unit in 2003, said it is in default under its credit agreement, as a result of the accounting problems. The company said it may have to restate revenue numbers for the period since the acquisition.
Symmetry estimates the unit overstated revenue by $12 million to $16 million since 1999. The Warsaw, Ind.-based firm said it is in discussions with its bank to remedy the credit situation.
"We are treating this matter with the utmost importance. I do want to stress that, based upon available information, we believe that this matter affects only the Sheffield, UK operating unit,” CEO Brian Moore said in a statement. “Changes have been made to the Sheffield site management by the Company and I will assume interim responsibility for the Sheffield facility.”
The U.K. unit’s employees believed to be involved with the accounting problems are no longer with the company or have been suspended pending a review, Symmetry said in a statement.
In afternoon trading, SMA shares are down 6.99%, or $1.24, at $16.50. Over the last 52 weeks, shares have ranged from $12.52 to $18.62.
