ICOT TO FILE AMENDMENT TO ANNUAL REPORT WITH SEC
ICOT TO FILE AMENDMENT TO ANNUAL REPORT WITH SEC SAN JOSE, Calif., May 22 /PRNewswire/ -- ICOT Corp.
(NASDAQ: ICOT) announced today that it is filing with the Securities and Exchange Commission (SEC) an amendment to its annual report of Form 10-K for the last fiscal year ended July 27, 1991 (the "1991-10-K"). The amendment will report the August 1991 payment of $675,000 to Lexicon Corp., previously reported as a charge against additional paid-in capital, as a litigation expense and charge to earnings for fiscal 1991. As a consequence, the company will report a net loss of $660,000 or $.05 per share for fiscal year 1991, compared with previously reported net income of $15,000 or $.00 per share, and will report net income of $4,925,000 or $.39 per share for the fiscal year 1991 fourth quarter, compared with the previously reported net income of $5,600,000 or $.44 per share. In connection with this adjustment, the company is also filing amendments to its quarterly reports on Form 10-Q for the first and second quarters of fiscal year 1992 to reflect the fiscal 1991 balance sheet and fiscal 1992 cash flow reclassifications. The adjustment will have no effect on reported earnings for any of the first three quarters of fiscal year 1992, nor will it adversely affect the company's stockholders' equity or cash.
The payment to Lexicon was an additional cash payment relating to a guarantee of the future price of company stock originally issued in 1986 in connection with an acquisition. Consequently, the company and its independent public accountants believed it was appropriate to treat the payment as a capital transaction and accordingly the $675,000 had been charged against additional paid-in capital in the first quarter of fiscal 1992. The amendments were filed following discussions with the SEC initiated after routine review of the company's 1991 10-K and Quarterly Reports on Form 10-Q for the first and second quarters of fiscal year 1992. ICOT Corp. is a provider of network connectivity systems for the PC-Connectivity and OEM markets. ICOT's products include local area network gateways, client-based workstation software and network data communications interfaces. The products are sold principally in the United States and Western Europe from its corporate headquarters in San Jose, sales offices located in several major cities in the United States, and a wholly owned subsidiary in the United Kingdom. -0- 5/22/92 /CONTACT: Joel M. Becker or John E. Arnold of ICOT, 408-433-3300/ (ICOT) CO: ICOT Corp.; Lexicon Corp. ST: California IN: CPR SU:
MM-MC -- SJ002 -- 3371 05/22/92 14:16 EDT
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|Date:||May 22, 1992|
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