Satellite TV firm says it will restate '02 results and delay '03 filing amid reserve fund inquiry.
March 15, 2004: 12:06 PM EST
WASHINGTON (Reuters) - EchoStar Communications Corp. formally filed a notice Monday with the U.S. Securities and Exchange Commission that it would not be able to file its annual report on time and that it would restate its 2002 results.
Last week, EchoStar said the SEC was looking into the company's accounting procedures and that it may require a restatement of its 2001 results. The probe relates to funds EchoStar placed in a reserve account between 1996 and 2002.
EchoStar, which operates the No. 2 U.S. satellite TV broadcaster Dish Network, said that the SEC informed the company on March 12 that it should restate its results for 2002 rather than 2001.
EchoStar (DISH: down $0.76 to $34.72, Research, Estimates) said it intended to restate the 2002 results by reducing its subscriber-related expenses by $30 million, making its pre-tax losses $779 million instead of the previously reported $809 million.
The restatements relate to a reserve fund to pay for replacement smart cards in satellite receivers. The cards, which provide security so only paying customers can receive broadcasts, were made obsolete as a result of piracy
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March 15, 2004: 12:06 PM EST
WASHINGTON (Reuters) - EchoStar Communications Corp. formally filed a notice Monday with the U.S. Securities and Exchange Commission that it would not be able to file its annual report on time and that it would restate its 2002 results.
Last week, EchoStar said the SEC was looking into the company's accounting procedures and that it may require a restatement of its 2001 results. The probe relates to funds EchoStar placed in a reserve account between 1996 and 2002.
EchoStar, which operates the No. 2 U.S. satellite TV broadcaster Dish Network, said that the SEC informed the company on March 12 that it should restate its results for 2002 rather than 2001.
EchoStar (DISH: down $0.76 to $34.72, Research, Estimates) said it intended to restate the 2002 results by reducing its subscriber-related expenses by $30 million, making its pre-tax losses $779 million instead of the previously reported $809 million.
The restatements relate to a reserve fund to pay for replacement smart cards in satellite receivers. The cards, which provide security so only paying customers can receive broadcasts, were made obsolete as a result of piracy
For the entire article click here
