ProQuest Redoing Financial Stats

By Michael Rogers -- Library Journal, 3/15/2006

ProQuest Company revealed internal accounting errors that will result in a restating of “certain of its previously issued financial statements.” To defuse any fears of a scandal like that involving subscription agent divine, Inc., ProQuest president Alan Aldsworth quickly staged a conference call in which he assured constituents that the errors do not “affect the amount invoiced to customers, cash received from customers, or disbursements made to publishers and suppliers.”

ProQuest wasn't fielding questions from the press but issued a statement, in part reading, “The company believes that its deferred income and accrued royalty accounts are materially understated in previously issued financial statements. It also believes that its prepaid royalty account is materially overstated…as a result it will be required to recognize amounts of royalty and other expenses as well as reduce a portion of revenues previously reported for its Information and Learning business, the effect of which will materially reduce earnings from continuing operations....”

No overcharging

ProQuest added that the “irregularities do not affect the company's cash balances.” It has retained an outside accounting firm to conduct a thorough examination of its finances. Although investors are preparing litigation, they confirm that neither customers nor suppliers were overcharged or cheated in any way.