By Will Feuer
Veradigm said it needs more time to complete its audit after the company, which provides healthcare information-technology services, detected internal control deficiencies related to revenue recognition.
The company said it is taking longer than initially expected to address the accounting and internal control errors. The issues affect the company’s Form 10-K for 2022 and its Forms 10-Q for the quarters ended March 31, 2023, and June 30, 2023.
Veradigm said it expects to file the forms during the fourth quarter. It added that the delay was caused by the need to build a new supplemental revenue system tool and extensive manual work needed to aggregate and map the company’s historical transaction data.
The company said it expects to receive a Nasdaq delisting notice as a result of the delay, but it plans to temporarily stay any delisting action.
Veradigm also revised its estimated impact of the accounting and internal control errors to a reduction in revenue from continuing operations of about $20 million from $40 million from what it otherwise reported or expected to report for the periods 2020 through the end of 2022.
Veradigm backed its 2023 sales and adjusted earnings outlook. The company added that it expects adjusted earnings before interest, taxes, depreciation and amortization to be $160 million to $170 million.
Write to Will Feuer at [email protected]
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