Concludes Previously Issued Financial Statements Should Not Be Relied Upon But Reaffirms Continuing Strength of the Business
NEW YORK, Nov. 20 /PRNewswire-FirstCall/ -- 'mktg, inc.' (Nasdaq: CMKG), an alternative marketing and media communications agency, today reported that its audited consolidated financial statements for the fiscal year ended March 31, 2008 and unaudited interim consolidated financial statements for the quarter ended June 30, 2008, should no longer be relied upon and may need to be restated. In addition, the Company is currently assessing whether its consolidated financial statements for its fiscal year ended March 31, 2007 need to be restated.
The Company is conducting a review of its historical financial statements, ledger entries and transactions in order to determine with specificity the adjustments required to be made to its previously issued financial statements. However, as a general matter, the Company believes that any such adjustments would result in a decrease in net income from that previously reported for one or both of the previous fiscal years ended March 31, 2008 and/or March 31, 2007.
The Company believes that any errors in prior financial statements were inadvertent and unintentional.
Fred Kaseff, the Company's Chief Financial Officer, commented, 'We are continuing our review and working with our independent registered public accounting firm toward being able to file amended Forms 10-Q and 10-K, and then our Quarterly Report on Form 10-Q for the quarter ended September 30, 2008. We intend to make these filings and become current in our reporting obligations as soon as practicable. For the quarter ended September 30, 2008, which is the second quarter of our fiscal 2009, we expect to report operating revenue of approximately $9.7 million and operating income of approximately $600,000. While the full brunt of the economic challenges to our clients remains unclear and may intensify into calendar 2009, our existing business, complemented by the successful integration of mktgpartners, positions us for operating revenue and profitability for the quarter ending December 31, 2008 that should be comparable to our quarter ended September 30, 2008.'
Charlie Tarzian, the Company's President and Chief Executive Officer, added, 'It is important to note, that despite the difficult economic climate, we are maintaining the strength of our relationships and business.
