BEDFORD, MA, Jan. 6 /CNW Telbec/ - GSI Group Inc. (Nasdaq: GSIG), a
supplier of precision technology and semiconductor systems, today announced
the issuance of a management cease trade order by the New Brunswick Securities
Commission on December 22, 2008. The management crease trade order replaces
the cease trade order issued by the New Brunswick Securities Commission on
December 5, 2005 and restricts the Company and its senior officers from
trading securities of the Company.
As a result of the management cease trade order, cease trade orders
issued by other Canadian securities regulators, including the Ontario
Securities Commission, have expired or been revoked. The cease trade orders
were issued as a result of the Company's previously announced delay in filing
its interim financial statements for its third quarter ended September 26,
2008 and the related management discussion and analysis.
On December 4, 2008, the Company announced that it had identified errors
in the recognition of revenue related to sales to a customer in the first and
second fiscal quarters of 2008 in the Company's Semiconductor Systems Segment.
These previously disclosed errors pertain to revenue of approximately
$8,982,000 recognized in the first fiscal quarter ended March 28, 2008 and
revenue of approximately $7,194,000 recognized in the second fiscal quarter
ended June 27, 2008 that should have been deferred until the delivery of
additional equipment in accordance with EITF 00-21 Revenue Arrangements with
As noted in the Company's December 4, 2008 public announcement, the
Company's Audit Committee is conducting a review of sales transactions in its
Semiconductor Systems Segment and other sales transactions that contain
arrangements with multiple deliverables for fiscal years 2007 and 2008. There
can be no assurances that such ongoing review will not impact the Company's
historical financial statements, including its cash position as of those
The Company's common shares are traded on The Nasdaq Stock Market and are
not listed on any Canadian stock exchange.
About GSI Group Inc.
GSI Group Inc. supplies precision technology to the global medical,
electronics, and industrial markets and semiconductor systems. GSI Group
Inc.'s common shares are listed on Nasdaq (GSIG).
Forward Looking Information
Certain statements in this release are "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995 and
are based on current expectations and assumptions that are subject to risks
and uncertainties. All statements contained in this press release that do not
relate to matters of historical fact should be considered forward-looking
statements. These forward-looking statements include statements regarding the
quantitative effects of the restatement, the range of potential adjustments,
the periods covered by the restatement, the nature of the Audit Committee's
review and any anticipated conclusions of GSI Group, its Audit Committee or
management, and other statements that are not historical facts. These forward
looking statements are subject to risks, uncertainties and changes in
financial condition, unknown factors and other items described in GSI Group's
annual report on Form 10-K for the fiscal year ended December 31, 2007 and the
quarterly reports on Form 10-Q filed with the Securities and Exchange
Commission. Such statements are based on management's beliefs and assumptions
and on information currently available to GSI Group's management. Actual
results may differ materially from the preliminary expectations expressed or
implied in these forward-looking statements due to various risks,
uncertainties or other factors, including the outcome and results of the
review by the Audit Committee and GSI Group's independent registered public
accounting firm. GSI Group disclaims any obligation to update any
forward-looking statements as a result of developments occurring after the
date of this document.
For further information:
For further information: Sergio Edelstein, GSI Group Inc.,