EATONTOWN, N.J., March 16 /PRNewswire-FirstCall/ -- Osteotech, Inc.
(Nasdaq: OSTE) announced today that it will delay the filing of its Form 10-K
for the year ended December 31, 2005, which was due on March 16, 2006.
Osteotech plans to file tomorrow with the Securities and Exchange Commission a
Form 12b-25, Notification of Late Filing, in anticipation of filing its Form
10-K on or before March 31, 2006.
As a result of the extensive and complex activities required by management
to complete their assessment of the Company's internal control over financial
reporting, required by Section 404 of the Sarbanes-Oxley Act of 2002, and the
performance of additional procedures with respect to the Company's year-end
financial statements, the Company will not be able to file its Annual Report
on Form 10-K on or before March 16, 2006 without unreasonable effort and
expense.
Management has determined that internal control over financial reporting
was not effective as of December 31, 2005 as a result of a material weakness
in the Company's internal controls primarily attributable to insufficient
domestic and corporate personnel with appropriate accounting knowledge,
experience and training. The details related to this material weakness and
management's remediation plans, along with Management's Report on Internal
Control over Financial Reporting, will appear under Item 9A of the Company's
Annual Report on Form 10-K when filed. Management's evaluation of the
internal control over financial reporting is still being completed, which
could result in additional material weaknesses being identified.
For the year ended December 31, 2005, the Company anticipates, subject to
completion of the audit, that it will report revenues of approximately $93.3
million and a net loss of approximately $21.1 million, or $1.23 diluted net
loss per share. Based on the procedures and audit still underway, additional
adjustments may be identified which could result in a change in the
anticipated 2005 financial results reported above. For the year ended
December 31, 2004, the Company reported revenues of $88.6 million and a net
loss of $5.3 million, or $.31 diluted net loss per share.
Certain statements made in this press release that are not historical
facts, including without limitation the Company's expectation that it will be
able to file its Form 10-K for the year ended December 31, 2005 on or before
March 31, 2006, the material weakness in internal control over financial
reporting the Company expects to report in its Form 10-K for the year ended
December 31, 2005 and the financial results that the Company expects to report
for 2005, contain forward-looking statements (as such are defined in the
Private Securities Litigation Reform Act of 1995) regarding the Company's
future plans, objectives and expected performance. Any such forward-looking
statements are based on assumptions that the Company believes are reasonable,
but are subject to a wide range of risks and uncertainties and, therefore,
there can be no assurance that the actual results may not differ materially
from those expressed or implied by such forward-looking statements. Certain
factors that could cause actual results to differ materially include, but are
not limited to, management's inability to complete its evaluation of the
Company's internal control over financial reporting and the performance of
additional procedures with respect to the Company's year end financial
statements within a time frame that allows the Company's Form 10-K for the
year ended December 31, 2005 to be filed on or before March 31, 2006,
management's identification of additional material weaknesses to the company's
internal control over financial reporting and additional adjustments that may
be identified based on the procedures and audit still underway which could
result in a change in the anticipated 2005 financial results reported above.
All information in this press release is as of March 16, 2006 and the Company
undertakes no duty to update this information.
Osteotech, Inc., headquartered in Eatontown, New Jersey, is a leading
provider of human bone and bone connective tissue for transplantation and an
innovator in the development and marketing of biomaterial and implant products
for musculoskeletal surgery. For further information regarding Osteotech or
this press release, please go to Osteotech's website homepage at
http://www.osteotech.com and to Osteotech's Financial Information Request Form
website page at http://www.osteotech.com/finrequest.htm.
SOURCE Osteotech, Inc.
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Related links:
http://www.osteotech.com
Company News On-Call:
http://www.prnewswire.com/comp/668050.html
CONTACT:
Mark Burroughs, Osteotech, Inc.,
+1-732-542-2800
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