AUSTIN, Tex. -- Microtune Inc. has agreed to restate financial statements from 2001 and 2002 after an independent investigator found the company had engaged in fraudulent accounting and financial reporting practices.
The 22-week investigation by John Fedders, a former enforcment director at thye Securities & Exchange Commission (SEC), concluded that Microtune promoted itself to the investment community as a product innovator and by touting revenue growth.
Fedders also found that Microtune (Plano, Texas) engaged in fraudulent accounting and financial reporting practices in an effort to meet its quarterly forecasts.
He concluded that Microtune lacked sufficient internal controls, procedures for the supervision of any controls or the means to detect violations of its controls or generally accepted accounting principles.
It is likely the SEC will now conduct a formal investigation, although the company said this was "impossible to predict."
Microtune intends to file its annual 10-K financial statement and quarterly 10-Q statement on July 31.
Microtune's board asked Fedders to invetigate in February, when the company has postponed filing financial reports for 2002 and the first quarter of 2003. Douglas Bartek, chairman and chief executive resignedin June and Microtune's stock was delisted by Nasdaq.
In a statement, Microtune said "the board is in the process of implementing Fedders' recommended corrections."