IKON Restates Fiscal 2000 through First Quarter Fiscal 200513 Jul, 2005
IKON Restates Fiscal 2000 through First Quarter Fiscal 2005
During a review of aged trade receivables conducted during the second quarter of fiscal 2005, IKON identified deficiencies in the processes and timeliness by which it issues and adjusts certain invoices. Based on the results of the review, the company's management concluded that the errors represented a cumulative effect over multiple periods and that prior period financial statements required restatement. The cumulative impact of the restatement for fiscal 2000 through first quarter fiscal 2005 and periods prior to fiscal 2000 was a decrease in revenue and net income of $125 million and $33 million, respectively.
French Subsidiary Sold
IKON Office Solutions announced that it has completed the sale of its French subsidiary, IKON Office Solutions, S.A.S., to NRG France S.A.S., a subsidiary of NRG Group PLC.
"We are taking aggressive actions to reduce costs and improve our operational efficiency," said Matthew J. Espe, chairman and CEO, IKON. "In March, we exited the business document services business and sold a majority of our operations in Mexico. As today's announcement demonstrates, we have moved quickly to exit non-strategic operations, allowing us to direct efforts and resources into the growth areas of our business."
The Company will continue to serve pan-European customers through an ongoing presence in Paris, as well as its 50 other locations across Europe.
"We remain committed to serving our customers in France and across Europe," added Espe. "Divesting the French subsidiary will allow us to focus more sharply on serving pan-European customers and on our expansion strategy of opening offices in key cities across the region. Europe presents a significant growth potential for IKON and we are well-positioned to take advantage of that opportunity."