McKesson Corporation (ticker: MCK, exchange: New York Stock Exchange (.N))
News Release -
25-May-1999
McKessonHBOC Announces That Additional Restatements Will be Required Business Editors and Health/Medical/High-Tech Writers
SAN FRANCISCO--(BUSINESS WIRE)--May 25, 1999--McKesson HBOC, Inc.
(NYSE:MCK) (McKessonHBOC) today announced that, as a result of
information developed through its continuing year-end audit process
and Audit Committee review of the circumstances which earlier required
the company to revise its preliminarily announced March 31, 1999
fiscal year-end financial results, further downward revision will be
required of those fiscal year's results as well as of quarterly
results during the fiscal year. The review, which is continuing, was
initiated due to the company's discovery of certain improper revenue
recognition matters relating to software sales at its recently
acquired Healthcare Information Technology Business unit (formerly HBO
& Company).
Additional instances of improper revenue recognition have been
found, which the company had previously indicated was a possibility,
and certain other financial statement items relating to the Healthcare
Information Technology Business are under review. It is possible that
prior years' results of this business unit also may require
restatement.
The company is working diligently with its independent auditors,
Deloitte & Touche LLP, and its legal and accounting advisors, Skadden,
Arps, Slate, Meagher & Flom LLP and Pricewaterhouse Coopers LLP, to
resolve these matters on a timely basis. Upon conclusion of the
company's year-end audit and the Audit Committee review, and action
thereon by the McKesson HBOC, Inc. Board of Directors, the company
will promptly issue its results for the year ended March 31, 1999. The
company also intends to consider and implement such other actions as
the Board determines may be necessary or appropriate.
Except for the historical information contained herein, the
matters discussed in this press release may constitute forward-looking
statements that involve risks and uncertainties that could cause
actual results to differ materially from those projected. These
statements may be identified by their use of forward-looking
terminology such as "believes," "expects," "may," "should," "intends,"
"plans," "estimates," "anticipates" and similar words. Risks and
uncertainties include the speed of integration of acquired businesses,
the impact of continued competitive pressures, success of strategic
initiatives, implementation of new technologies, continued industry
consolidation, changes in customer mix, changes in pharmaceutical
manufacturers' pricing and distribution policy, the changing U.S.
healthcare environment, conclusion of McKessonHBOC's ongoing financial
audit and the other information referenced in the company's April 28,
1999 and current press releases, and other factors discussed from time
to time in reports filed by McKesson HBOC, Inc. with the Securities
and Exchange Commission. The company assumes no obligation to update
information contained in this release. More information about
McKessonHBOC is available on its World Wide Website at
http://www.mckhboc.com.
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CONTACT: McKesson HBOC, Inc.
Media:
Larry Kurtz, 415/983-8418
or
Investors:
Janet Bley, 415/983-9357
or
Beth Dalton, 404/338-2379
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: MEDICINE PHARMACEUTICAL COMPUTERS/ELECTRONICS
COMED RETAIL EARNINGS
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McKesson Corporation
