Misonix: Investigation found prior results were accurate

Misonix Inc., a Farmingdale medical device maker, said that an internal examination found it would not need to restate prior results that had come into question.

The company also reported a net loss for its first and second quarters ended Sept. 30 and Dec. 31 as it incurred costs related to its internal accounting investigation.

The company had delayed filing the quarterly reports as it investigated transactions of an “independent Chinese entity” that had distributed Misonix products in China. In a news release late Monday, the company said previous financial reports “were found to be accurate.”

“We are pleased to complete this process with the filing of the two quarterly reports, and in regaining full compliance with the [Securities and Exchange Commission] and Nasdaq rules,” Stavros Vizirgianakis, president and chief executive of Misonix, said in a statement.

In September, Misonix alerted the SEC and the Department of Justice about possible violations to the Foreign Corrupt Practices Act. That law bars Americans from bribing foreign government officials to obtain or retain business and requires publicly traded companies to maintain accounting standards that would reveal compliance with anti-bribery provisions.

Misonix had been out of compliance with rules of the Nasdaq Stock Market LLC requiring timely filing of financial reports.

In the quarter ended Dec. 31 Misonix reported a net loss of $600,000, or 7 cents per diluted share, versus net income of $200,000, or 2 cents per diluted share, in the year-earlier period. Sales were flat at $6 million.

In the quarter ended Sept. 30 the company posted a net loss of $500,000, or 7 cents per diluted share, versus a net loss of $200,000, or 3 cents per diluted share. Net sales for that quarter ended Sept. 30 increased 17.5 percent to $6.2 million.

The company said expenses related to the investigation affected both quarters.

Misonix shares were unchanged Tuesday at $11.60 on the Nasdaq Global Market. The shares are up more than 80 percent in the past 12 months.

By Ken Schachter

kenneth.schachter@newsday.comkschach

Ken Schachter covers corporate news, including technology and aerospace, and other business topics for Newsday. He has also worked at The Miami Herald and The Jerusalem Post.