EAST RUTHERFORD, N.J., March 31 /PRNewswire-FirstCall/ -- Cambrex
Corporation (NYSE: CBM) announced today that it is unable to complete and file
the Company's Annual Report on Form 10-K for the fiscal year ended December
31, 2005 by the extended due date of March 31, 2006.
(Logo: http://www.newscom.com/cgi-bin/prnh/20000613/CAMBREXLOGO )
During the 2005 year-end closing procedures, it was determined that the
Company had incorrectly accounted for U.S. tax benefits related to certain
components of Other Comprehensive Income during 2003, 2004 and 2005. The
cumulative effect of this matter was an understatement of Net Income of
approximately $2.3 million. The Company also determined that certain of its
tax balance sheet accounts had not been properly reconciled and has been
working diligently to complete the appropriate analysis.
Additionally, the Company is assessing whether it was appropriate to apply
certain technical guidelines that govern the determination of quarterly Income
Tax Expense in 2004 and 2005. The outcome of this assessment would not change
the Company's total Income Tax Expense or Net Income for either year but may
impact quarterly results.
Until the analyses of the tax accounts are complete, it cannot be
determined whether these matters will result in material adjustments to
previously reported financial statements. The assessment of internal controls
over financial reporting has not been completed. However, based upon the
assessment to date, the Company expects to report a material weakness related
to the Company's internal controls within its corporate tax department.
The Company expects to file its 2005 Form 10-K with the Securities and
Exchange Commission as soon as it completes the above referenced work. Due to
the foregoing, the Company is postponing its 2006 Annual Meeting of
Shareholders until these matters are resolved.
The information contained in this press release is unaudited, subject to
revision and should not be considered final until the 2005 Form 10-K is filed
with the U.S. Securities and Exchange Commission.
Forward Looking Statements
This news release contains "forward-looking statements" within the meaning
of the Private Securities Litigation Reform Act of 1995 and Rule 3b-6 under
The Securities Exchange Act of 1934, including, without limitation, statements
regarding expected performance, especially expectations with respect to sales,
research and development expenditures, earnings per share, capital
expenditures, acquisitions, divestitures, collaborations, or other expansion
opportunities. These statements may be identified by the fact that words such
as "expects," "anticipates," "intends," "estimates," "believes" or similar
expressions are used in connection with any discussion of future financial and
operating performance. The forward-looking statements contained herein are
based on current plans and expectations and involve risks and uncertainties
that could cause actual outcomes and results to differ materially from current
expectations including but not limited to, global economic trends,
pharmaceutical outsourcing trends, competitive pricing or product
developments, government legislation and/or regulations (particularly
environmental issues), tax rate, interest rate, technology, manufacturing and
legal issues, changes in foreign exchange rates, performance of minority
investments, uncollectible receivables, loss on disposition of assets,
cancellation or delays in renewal of contracts, and lack of suitable raw
materials or packaging materials, the possibility that the value of the
acquisition of PermaDerm(TM) cultured skin may not be realized or that our
plans to obtain a Humanitarian Device Exemption, completion of clinical trials
and commercialization of PermaDerm cultured skin in the United States may not
be successful and the Company may not receive regulatory approval for its
products.
For further details and a discussion of these and other risks and
uncertainties, investors are cautioned to review the Cambrex Annual Report on
Form 10-K, including the Forward-Looking Statement section therein, and other
filings with the Securities and Exchange Commission. The Company undertakes
no obligation to publicly update any forward-looking statement, whether as a
result of new information, future events or otherwise.
About Cambrex
Cambrex is a global, diversified life sciences company dedicated to
providing products and services to accelerate and improve the discovery and
commercialization of human therapeutics. The Company employs approximately
2000 worldwide. For more information, please visit http://www.cambrex.com.
SOURCE Cambrex Corporation
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PRN Photo Desk, photodesk@prnewswire.com
Related links:
http://www.cambrex.com
Company News On-Call:
http://www.prnewswire.com/comp/134219.html
CONTACT:
Luke M. Beshar, Executive Vice President &
CFO, +1-201-804-3010, luke.beshar@cambrex.com, or Anne-Marie
Hess, Senior Director, Investor Relations, +1-201-804-3062,
annemarie.hess@cambrex.com, both of Cambrex Corporation
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