FARO Technologies Reports Delayed Form 10-K Filing
16 March 2006 - 8:50AM
PR Newswire (US)
LAKE MARY, Fla., March 15 /PRNewswire-FirstCall/ -- FARO
Technologies, Inc. (NASDAQ:FARO) today announced that as a result
of an internal review conducted by the Company, the Company
recently learned of suspicious payments in connection with foreign
sales activities in China. As a consequence, the Company is
conducting an internal investigation to determine the extent of any
improper payments and possible deficiencies in its books and
records and internal controls with respect to operations in China
and the Asia/Pacific region, in possible violation of the
anti-bribery, books and records and internal controls provisions of
the Foreign Corrupt Practices Act. The Company voluntarily has
notified the Securities and Exchange Commission ("SEC") and the
Department of Justice ("DOJ") of this matter. The Company has
provided information to the SEC and DOJ with regard to this
internal investigation and is cooperating with the SEC and DOJ.
Because this internal investigation is currently ongoing, the
Company's filing of its Form 10-K for the year ended December 31,
2005 with the SEC will be delayed beyond the filing deadline of
March 15, 2006. Based on current information, it is not possible to
predict at this time when the Company will file its Annual Report
on Form 10-K, when these matters will be resolved, what the outcome
will be, what sanctions, if any, will be imposed, or the effect
that such matters may ultimately have on the Company or its
consolidated financial statements. "FARO is working diligently to
complete its internal investigation and to file its Annual Report
on Form 10-K as soon as possible," said Simon Raab and Jay
Freeland, the Company's Co-Chief Executive Officers. "Improper
payments or other violations of law will not be tolerated, and FARO
intends to cooperate with the DOJ and SEC so this matter can be
resolved as quickly as possible." For the years ended December 31,
2005 and 2004, the Company's sales in China were approximately $9.0
and $4.2 million, respectively, or 7.1 percent and 4.3 percent of
the Company's consolidated sales, respectively. Outlook for 2006 In
light of these developments, the Company believes that it is
prudent at this time to withdraw its previous guidance for its 2006
financial targets that it released in February 2006. The Company
intends to provide updated guidance for 2006 when it is able to do
so. This press release contains forward-looking statements (within
the meaning of the Private Securities Litigation Reform Act of
1995) that are subject to risks and uncertainties, such as
statements about our plans, objectives, projections, expectations,
assumptions, strategies, or future events. Statements that are not
historical facts or that describe the Company's plans, objectives,
projections, expectations, assumptions, strategies, or goals are
forward-looking statements. In addition, words such as "may,"
"believes," "anticipates," "expects," "intends," "plans," "seeks,"
"estimates," "will," "should," "could," "projects," "forecast,"
"target," "goal," and similar expressions or discussions of our
strategy or other intentions identify forward-looking statements.
Other written or oral statements, which constitute forward-looking
statements, also may be made by the Company from time to time.
Forward-looking statements are not guarantees of future performance
and are subject to various known and unknown risks, uncertainties,
and other factors that may cause actual results, performances, or
achievements to differ materially from future results,
performances, or achievements expressed or implied by such
forward-looking statements. Consequently, undue reliance should not
be placed on these forward-looking statements. Factors that could
cause actual results to differ materially from what is expressed or
forecasted in forward-looking statements include, but are not
limited to: * The inability for the Company to complete its
internal investigation in a timely fashion; * The expense related
to the Company's internal investigation; * The Company's inability
to conduct its business at full capacity while cooperating with
potential investigations from the SEC and/or the DOJ; * The
outcome, if any, from a possible inquiry from the SEC or DOJ; and *
The other risks detailed in the Company's Annual Report on Form
10-K and other filings from time to time with the Securities and
Exchange Commission. Forward-looking statements in this release
represent the Company's judgment as of the date of this release.
The Company undertakes no obligation to update publicly any
forward-looking statements, whether as a result of new information,
future events, or otherwise. About FARO With more than 9,100
installations and 4,100 customers globally, FARO Technologies, Inc.
and its international subsidiaries design, develop, and market
software and portable, computerized measurement devices. The
Company's products allow manufacturers to perform 3-D inspections
of parts and assemblies on the shop floor. This helps eliminate
manufacturing errors, and thereby increases productivity and
profitability for a variety of industries in FARO's worldwide
customer base. Principal products include the FARO TrackArm; FARO
Laser ScanArm; FARO Laser Scanner LS; FARO Gage and Gage-PLUS;
Platinum, Digital Template, Titanium, Advantage FaroArms; the FARO
Laser Tracker X and Xi; and the CAM2 family of advanced CAD-based
measurement and reporting software. FARO Technologies is ISO 9001
certified and ISO-1702. DATASOURCE: FARO Technologies, Inc.
CONTACT: Greg Fraser, Executive VP, FARO Technologies, Inc.,
+1-407-333-9911 Web site: http://www.faro.com/
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