March 13, 2008 / 9:29 PM / 10 years ago

Angiotech restates 2007 loss after tax errors

CALGARY, Alberta, March 13 (Reuters) - Medical device firm Angiotech Pharmaceuticals Inc ANP.TO said on Thursday its 2007 loss was larger than reported last month because of accounting errors on the treatment of taxes and warned more mistakes could come.

Angiotech, which makes the coating for Boston Scientific Corp’s (BSX.N), restated its loss for the year to $65.9 million, or 66 cents a share, from the $59.4 million, or 56 cents, reported when it released its preliminary results on February 14.

The company also restated its 2006 results, boosting its reported profit to $10.7 million, or 21 cents a share, from the $4.59 million, or 14 cents, initially reported.

Angiotech said in a release it had found “material weakness” in its internal controls for accounting for income tax provisions and warned it had not yet corrected the problem.

“The Company did not have sufficient personnel to enable it to properly consider and apply generally accepted accounting principles for income taxes,” Angiotech’s release said.

It added that by the end of last year, “the company’s internal control over financial reporting was not effective. In addition, until remediated, this material weakness could result in a future misstatement ... that would not be prevented or detected.”

Angiotech said it has decided to have a large independent accounting firm handle the accounting for its tax provisions. The firm, which was not named, will also redesign the company’s tax-accounting processes and controls.

Angiotech shares fell 11 Canadian cents to C$2.00 on Thursday on the Toronto Stock Exchange. The stock has fallen 72 percent over the past 12 months.

$1=$0.98 Canadian Reporting by Scott Haggett; editing by Renato Andrade

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