Veradigm, a leading provider of healthcare information-technology services, has announced that it requires additional time to complete its audit due to the discovery of internal control deficiencies related to revenue recognition.
The company acknowledges that addressing the accounting errors and internal control issues is taking longer than initially anticipated. As a result, there will be a delay in filing Veradigm’s Form 10-K for 2022 and Forms 10-Q for the quarters ending March 31, 2023, and June 30, 2023. These forms are now expected to be filed during the fourth quarter.
The delay in the filing process is primarily due to the necessity of constructing a new supplemental revenue system tool. Additionally, extensive manual work is required to aggregate and map the company’s historical transaction data accurately.
While Veradigm anticipates receiving a Nasdaq delisting notice as a consequence of the delay, the company intends to temporarily prevent any delisting action from being taken.
In light of the accounting and internal control errors, Veradigm has adjusted its estimated impact on revenue from continuing operations. The revised figure reflects a reduction of approximately $20 million instead of the previously reported $40 million for the period spanning 2020 through the end of 2022.
Despite these challenges, Veradigm remains confident in its sales and adjusted earnings outlook for 2023. The company reaffirms its expectations for adjusted earnings before interest, taxes, depreciation, and amortization to be in the range of $160 million to $170 million.