Alere Expects to Restate Financial Results

Alere Inc., which previously disclosed revenue-recognition issues in Africa and China, expects to determine that it had material weakness in its internal controls and plans to restate certain results.

The health-care diagnostics company said in March that it was looking into revenue cutoff issues for 2013 through 2015. On Thursday, the company said incorrect revenue timing mostly involved transactions in Africa in which it recognized revenue when the product shipped to the distributor, and "bill and hold" transactions in China.

Alere said the effect of the misstatements "is not expected to be material" but "expects that the cumulative effect of reflecting these misstatements in the current year would be material" to 2015.

Less than three months after Abbott Laboratories announced a $5.8 billion deal to buy Alere, the deal was in jeopardy. Alere said in late April that it rejected an offer of up to $50 million by Abbott to terminate their agreement.

In March, Alere disclosed it received a subpoena regarding a foreign corruption investigation over payments in Africa, Asia and Latin America.

Write to Josh Beckerman at [e-mail]

(END) Dow Jones Newswires

July 14, 2016 18:45 ET (22:45 GMT)

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