First Consulting Restates Earnings

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First Consulting Group Inc. on Wednesday said it restated and reduced its tax expense for fiscal years 2002 through 2004, citing material weakness in internal controls related to its tax accounting.


The Long Beach-based provider of software and services for the health care industry said the restatements reduced its tax expense for those years by $1.3 million and increased its fiscal 2005 tax expense by the same amount. The changes did not affect its pretax operating income for the fourth quarter and fiscal years, it said.


First Consulting, which also filed its 2005 annual report on Wednesday, had received notice earlier this month from the Nasdaq that its stock could be delisted because of its failure to file the report in a timely fashion. The company attributed the delay to the review of the income tax provision, adding that it has taken steps to improve its internal controls.


The company had earlier requested a hearing before a Nasdaq listing panel, but now said it believes the filing of the 10-K report brings it back into compliance and will alleviate the need for a hearing.


Shares of First Consulting rose 1 percent to $7.75 on Wednesday.

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