Montage Technology Group
Limited MONT ("Montage Technology" or "Montage" or the "Company"), a
global fabless provider of analog and mixed-signal semiconductor solutions
addressing the home entertainment and cloud computing markets, today announced
that the audit committee of the Company, with the assistance of the law firm
of Jones Day, as well as forensic accountants from FTI Consulting, has
reported on the results of the review conducted to date, representing over
6,000 hours of work by the audit committee's advisors.
Among other things, the report details various forensic procedures performed
to analyze a significant portion of the Company's cash, cash equivalents, and
short-term investment balances with its financial institutions at various
points in time. In addition, the report details investigative tasks conducted
to analyze the Company's revenue and gross margins, which tasks included
written confirmations and in-person site visits with selected participants in
the manufacturing and supply chain and the distribution and sales channel,
including selected Fabs, assembly/testing companies (OEMs), distributors,
including LQW, and end customers. Various analyses of financial and accounting
records were also performed. As noted in a report from these advisors to the
audit committee, based upon the investigative procedures performed, the
information considered to date and subject to the limitations specified in the
report:
o the cash, cash equivalents, and short-term investments reflected in the
Company's records and/or publicly reported by the Company as of December
2011, 2012, and 2013 appear to be materially accurate;
o no significant variances have been identified with respect to the
Company's reported revenue for years 2011, 2012, and 2013; and
o the Company's gross margins for years 2011, 2012 and 2013 appear
reasonable.
In addition, the audit committee's report notes that although certain persons
associated with these entities are known to members of the Company's
management, the review procedures performed to date found no conclusive
evidence that the Company owns or otherwise has an inappropriate relationship
with the entities referred to in the Gravity Research reports as SMMT and LQW.
Based upon the audit committee's report, the Company continues to believe that
the allegations by Gravity Research lack merit, and the Company therefore does
not anticipate any changes to its previously reported financial results. The
audit committee, in consultation with its outside legal and accounting
advisors and the Company's independent auditors, is evaluating what additional
review procedures are necessary or appropriate for the audit committee's
review of the allegations in order to be able to file the Company's Form 10-K
for the year ended December 31, 2013. The Company and the audit committee are
continuing to work diligently on this matter, and the Company expects to file
its annual report on Form 10-K as soon as practicable following completion of
the audit committee's review.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Posted In: NewsPress Releases
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in