Shares of ArthroCare Corp. fell Monday after the surgical products maker said it would have to restate results due to faulty sales calculations.
The Austin, Texas-based company's shares fell $16.82, or 42 percent, to close at $23.21. Earlier in the session, shares hit a 52-week low of $22.77. The stock has ranged from $32.47 to $65.70 over the past year.
ArthroCare announced it could lower its reported revenue by up to $37 million as it restates earnings for 2006, 2007 and the first quarter of 2008.
The company expects to reduce operating and net income for the periods being restated, but did not provide an estimate.
ArthroCare said the method it used to report revenue from its relationship with DiscoCare did not accurately record the 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.
Terms & Conditions
RSS Headlines
Fool UK