ArthoCare restating results for some periods

Surgical products maker ArthroCare Corp. said Monday it could lower its reported revenue by up to $37 million as it restates earnings due to faulty sales calculations.

ArthroCare said the method it used to report revenue from its relationship with DiscoCare did not accurately record the actual sales prices of products sold.

Arthrocare purchased DiscoCare, a reimbursement service provider, for $25 million earlier this year.

Sales through DiscoCare for the periods to be restated "cannot be considered fixed or determinable upon shipment by ArthroCare," the company said in a statement.

The company estimates the restatement will lower its revenue for 2006 by $4 million to $7 million, its revenue for 2007 by $20 million to $25 million and its revenue for first quarter 2008 by $2 million to $5 million. The company expects to reduce operating and net income for the periods being restated, but did not provide an estimate.