UniTek Global Services Inc. (UNTK), said Friday it expects to post a net loss of $48.2 million to $41.4 million and revenues of $442.5 million to $447 for the fiscal year ended December 2012.
Analysts at Thomson Reuters currently expect the company to report a loss of $0.17 per share on revenues of $450.31 million for 2012. Analysts' estimates typically exclude one-time items.
The estimated 12-month backlog as of December 2012 totaled about $510 million.
UniTek said it will restate its financial results for the interim periods ended March 2012, June 2012 and September 29, 2012, as well as for the fiscal year ended December 2011 and the interim period ended October 1, 2011.
In a statement, the company said that an ongoing internal probe revealed several employees of its Pinnacle Wireless unit to have engaged in fraudulent activities that resulted in improper revenue recognition. Since UniTek's acquisition of the legacy Pinnacle business in April 2011, that business has comprised less than 10% of the company's consolidated revenues.
UniTek also said it has terminated Ronald Lejman as chief financial officer and Treasurer, effective immediately. Kenneth Cichocki, CPA, of Pillar Solutions Group, has been engaged to serve as UniTek's interim CFO, effective April 15.
The company further said it has terminated Kevin McClelland, controller and chief accounting officer, Michael Hayford, president of the Pinnacle Wireless division, as well as several other employees of Pinnacle Wireless and an employee of the UniTek finance department. UniTek Chief Operating Officer Donald Gately will serve as acting president of Pinnacle Wireless. None of the terminated individuals will receive severance.
UniTek said it has commenced a search for permanent replacements for the CFO and Controller positions.
The company plans to consider its potential rights and remedies with respect to payments previously made under the March 30, 2011 Asset Purchase Agreement by which it purchased substantially all of the assets of Pinnacle Wireless Inc. and Current Flow Technologies Corp.
Pennsylvania-based UniTek provides permanently outsourced infrastructure services to the telecommunications, broadband cable, wireless, transportation, public safety and satellite television industries.
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