SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
Current Report Pursuant to Section 13 or 15 (d) of
The Securities Act of 1934
Date of Report (Date of earliest event reported): December 7, 2001
AREMISSOFT CORPORATION
(Exact name of registrant as specified in its charter)
| Delaware (State or other jurisdiction of incorporation or organization) | 0-25713 Commission File No. | 68-0413939 (I.R.S. Employer Identification No.) | ||
Two Meridian Crossings Minneapolis, MN (Address of principal executive offices) | 55423 (Zip Code) | |||
(612) 851-1900 (Registrant's telephone number, including area code) | ||||
(Former name or former address if changed since last report) | ||||
ITEM 5. OTHER EVENTS AND REGULATION FD DISCLOSURE.
Withdrawal of Audit Report.
On December 4, 2001, AremisSoft Corporation (the "Company") filed a Form 8-K reporting a number of events, including the preliminary results of an internal investigation through which it was unable to substantiate approximately $90 million of consolidated revenue generated by its Emerging Markets Group ("EMG") in 2000. The Company noted that this, and other information derived from the investigation, caused it to expect that previously released prior period financial statements would require substantial adjustments and that those adjustments could result in substantial losses in prior periods.
On December 7, 2001, PKF (the independent auditors that reported on financial statements of the Company at and for the years ended December 31, 1999 and 2000), notified the Company that the auditors' reports of PKF on such financial statements, as originally issued or as restated, must no longer be associated with such statements and that such auditors' reports should no longer be relied on.
Reduction in Workforce
In an effort to consolidate past AremisSoft acquisitions and reduce expense for 2002, the Company is reducing its total workforce by approximately 12 percent, or about 150 workers, primarily from its Hospitality and Manufacturing Groups. The workforce reductions, which are being implemented in stages through early retirement, attrition and terminations, will be effective December 31, 2001.
Trading Activity
The Company's common stock was delisted from the Nasdaq effective August 30, 2001 and does not qualify for listing on the Nasdaq's over the counter bulletin board or any other exchange. Nevertheless, the trading volume reported by pinksheets and other unregulated reporting services during the past week has been unusually high and the prices extremely volatile.
The Company reminds investors that the Company has not filed or publicly released financial information regarding its financial position or results of operations for periods after March 31, 2001 and has indicated in previous filings that its previously released prior period financial statements may require substantial adjustments. Accordingly, investors are reminded that current trading in the Company's common stock is subject to a high degree of risk and is highly speculative for a number of reasons, including the following:
trading. The Company, without admitting or denying any of the allegations in the suit, consented to the entry of a preliminary injunction enjoining it from violating certain securities laws pending the outcome of the litigation. The court also ordered the assets from sale of Company common stock of the two former officers frozen and ordered those officers to repatriate the assets to the United States;
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| AREMISSOFT CORPORATION | ||
| Date: December 19, 2001 | /s/ David G. Latzke David G. Latzke, Chief Financial Officer |
