Celera Delays Filing of 2010 Form 10-K
Cites accounting issues that are not expected to significantly affect the consolidated financial statements for 2010
ALAMEDA, CA - March 10, 2011
Celera Corporation (NASDAQ:CRA) announced today that it will file a Form 12b-25 with the Securities and Exchange Commission requesting a 15 calendar day extension to file its 2010 Annual Report on Form 10-K. The delay in filing has been caused by an analysis of certain accounting issues that impact bad debt expense. The Company will also delay its fourth quarter and full year 2010 earnings release and investor conference call, previously scheduled for later today, until the Form 10-K is filed.
The actions have been taken to provide additional time to assess the Company’s bad debt expenses, primarily in the Company’s consolidated financial statements for 2008 and 2009, including the impact of applying FASB ASC Topic 954, Health Care Entities (ASC954). Application of ASC954 will result in certain amounts that were previously included in selling, general and administrative expenses being reflected as a reduction in revenue.
The Company does not anticipate any significant impact on its consolidated financial statements for the year ended December 25, 2010 and does not expect any impact on 2010 net loss as a result of these issues.
Celera is a healthcare business focusing on the integration of genetic testing into routine clinical care through a combination of products and services incorporating proprietary discoveries. Berkeley HeartLab, a subsidiary of Celera, offers services to predict cardiovascular disease risk and improve patient management. Celera also commercializes a wide range of molecular diagnostic products through Abbott and has licensed other relevant diagnostic technologies developed to provide personalized disease management in cancer. Information about Celera Corporation, including reports and other information filed by the company with the Securities and Exchange Commission, is available at http://www.celera.com.
Certain statements in this press release are forward-looking. These may be identified by the use of forward looking phrases such as “believe,” “expect,” “plan,” “will,” “should,” “look to,” “anticipate,” and “intend,” among others. These forward-looking statements are based on Celera’s current expectations. Celera notes that a variety of factors could cause actual results and experience to differ materially from the anticipated results or other expectations expressed in such forward-looking statements. These risks and uncertainties include, but are not limited to: (1) our dependence on government insurance programs such as Medicare and private insurance companies accepting the use of our services and products as medically necessary and worthy of reimbursement; (2) our dependence on the amounts that government and private payors will pay for our services and products, and that these amounts may be reduced in response to ongoing efforts by these payors to control healthcare costs; (3) potential negative impact of our future participation in provider networks; (4) adverse impact from Medicare contracting and general healthcare reforms that focus on reducing healthcare costs and/or do not recognize the value of diagnostic testing; (5) competition in the healthcare and lab services industries is intense and evolving and physicians may not adopt or continue to utilize our products and services; (6) difficulty in collection of receivables, or timely or accurately billing for our services; (7) inability to maintain the necessary intellectual property protections to compete effectively; (8) competition in our diagnostic products business from Life Technologies following our split-off from Applied Biosystems (now Life Technologies) and liabilities and restrictions relating to our split-off from Applied Biosystems (now Life Technologies), including as to indemnification obligations; (9) negative macroeconomic conditions that may harm our business, including by impacting utilization of our services and products, and by slowing our collections and increasing our allowance for doubtful accounts; (10) the impact of extensive federal and state laws and regulations and violations of such laws and regulations or changes in such laws and regulations that could harm our operating results and financial condition; (11) our reliance on single source suppliers or a limited number of suppliers of instruments and key components of our products; (12) the impact of potential U.S. Food and Drug Administration interpretations of the regulations governing the sale of Analyte Specific Reagents because the interpretation may require regulatory clearance or approval for some existing products that to date have been sold without clearance or approval; (13) the FDA draft guidance on a new class of complex laboratory-developed tests may require our clinical laboratory and our licensees to obtain regulatory clearance or approval before it or they can perform these tests; (14) our scientific discoveries may not be replicated in studies by other investigators, which may negatively impact the acceptance of, or reimbursement for, our diagnostic products and testing services; (15) we are dependent on Abbott Molecular to commercialize our diagnostic products and may be unable to maintain this relationship; (16) our business may be disrupted as a result of the departure of sales representatives identified in the now settled litigation with a competitor; (17) payors we expect to refund in connection with our review of the orders for additional testing performed on samples previously received and processed by BHL may make additional claims for money, including penalties, or may seek other remedies; (18) we could be adversely affected by results from pending or future lawsuits, private action or government investigation; (19) the impact of our review of accounting issues including the application of FASB ASC Topic 954, Health Care Entities; and (20) our ability to complete and timely file our Form 10-K for the year ended December 25, 2010. The foregoing list sets forth some, but not all, of the factors that could affect our ability to achieve results described in any forward-looking statements. For additional information about risks and uncertainties we face and a discussion of our financial statements and footnotes, see documents we file with the SEC, including our Quarterly Report on Form 10-Q for the quarter ended September 25, 2010. We assume no obligation and expressly disclaim any duty to update forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of subsequent events.
Copyright© 2011 Celera Corporation. All Rights Reserved. Celera is a registered trademark of Celera Corporation or its subsidiaries in the U.S. and/or certain other countries.
David Speechly, Ph.D.
Tel: (510) 749-1853
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