BISYS, a provider of business process outsourcing solutions for financial services, has shed further light on this week’s announcement it was nearly tripling its adjustment for insurance receivables.
BISYS earlier this week said that its previously reported adjustment of $24.7 million to commissions receivable in its Life Insurance division would be increased to somewhere between $70 million to $80 million in the quarter ended March 31. The company further said that the adjustment would cause them to restate earnings in the prior three years.
Later Jim Fox, BISYS’ executive vice president and CFO said that “while we continue to believe that the final adjustment will be in the range of $70 to $80 million, we currently estimate the required adjustment to commissions receivable to be approximately $72 million. Based on this estimate, we do not expect the adjustment to have any material impact on our reported operating results for fiscal year 2004, except that the commissions receivable adjustment of $24.7 million previously reported for our third fiscal quarter of 2004 will be included in the restatement of prior periods.”
Added Russ Fradin, BISYS’ president and CEO, “we continue to expect that our net income for our fiscal fourth quarter will be in the range of $0.16 to $0.18 per share, excluding restructuring, impairment, and other charges. And we continue to expect the financial results of our Life Insurance business to improve in fiscal year 2005. “
The company also announced it has filed Form 12b-25 with the SEC this week, extending the period of time to file its 10-Q for the quarterly period ended March 31, 2004 to May 24, 2004.
But Fox added, “although we are making every effort, together with our independent auditors, to be in a position to file the 10-Q by May 24, the filing may be further delayed for the necessary reviews to be completed to enable the company to accurately present results for all periods presented.”