December 10, 2001 — SALT LAKE CITY, UT — Daw Technologies, Inc. said that its business continues notwithstanding its present efforts to reconcile several general ledger accounts relating to its European operations and to complete and file with the Securities and Exchange Commission its quarterly report for the three-month period ended September 30.
At the same time, Daw announced the appointment of Norman Simpson as finance manager for the company’s European operations headquartered in Livingston, Scotland.
“Our financial team in both the US and the UK has been working very closely with our current and previous auditors to bring this situation into focus as quickly as possible,” said Michael J. Shea, president of Daw. “We believe we have identified the source of the accounting problems in the UK office, and we anticipate being able to provide a full report to all interested parties and make our delayed SEC filing in the near future.”
Daw announced on November 19 that it was unable to file its financial results for the third quarter of 2001 in a timely manner because it had been unable to reconcile several general ledger accounts relating to its European branch office operations. According to the company, the difficulty in reconciling these accounts related to the complexities involved in operating a multinational construction company, particularly the effects of fluctuating foreign currencies on contracts in progress and on project revenue and costs.
Daw further announced on November 27 that it had received a delisting notice from Nasdaq, and Nasdaq halted trading in Daw stock on November 20. The company has appealed Nasdaq’s delisting notice, and company executives are scheduled to meet with Nasdaq representatives on December 20 in Washington, D.C.
“Although the recently discovered accounting issues are serious, they have not negatively impacted our ability to do what we do best — engineer, design, manufacture, install and service ultra — clean manufacturing environments the world over,” Shea said. “Management is confident that the company will continue to move forward as one of the leading companies in the cleanroom industry despite any setback that may be created by these accounting issues.”