This is a securities fraud class action against Integral Systems Inc.
Integral Systems builds satellite ground systems and equipment for command and control, integration and test, data processing, and simulation.
On December 11, 2008 Integral Systems shocked investors when it revealed that the unaudited financial statements of Integral Systems for the interim periods ended December 31, 2007, March 30, 2008 and June 30, 2008 should no longer be relied upon due to an error in the accounting treatment for certain transactions with respect to the timing of the recognition of revenue between periods. Integral Systems further disclosed that, as a result, Integral Systems would restate its previously filed financial statements for those interim quarterly periods in fiscal year 2008. Integral Systems estimated that the net impact of the adjustments for the first three quarters of 2008 would result in a decrease of approximately $10 million in revenues, a decrease of approximately $3 million in gross profit, a decrease of approximately $4 million in operating income, and a decrease of approximately $0.13 in earnings per share.
On this news, shares of Integral Systems declined $6.38 per share, or 28.61%, to close on December 11, 2008 at $15.92 per share, on unusually heavy volume.
Name (Stock Symbol)
Integral Systems, Inc. (ISYS)
Integral Systems, Inc. designs, manufacturers, and installs satellite ground systems.
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