BISYS, a property-casualty insurance outsourcing firm, said an internal investigation resulting from questions about its accounting will result in a restatement of earnings going back to 2002.
BISYS said its restatement would reduce reported revenues, operating earnings, and net income in quarterly and annual periods prior to fiscal 2004. It would "modestly" increase previously reported revenues, operating earnings and net income in fiscal year 2004 and the first two fiscal quarters of 2005. Cash flows are not expected to be affected.
"We are committed to ensuring that this restatement will provide closure on these issues and will enable us to focus on serving our customers and growing our business in fiscal 2006 and beyond," said Russ Fradin, president and chief executive officer of BISYS, in a statement, adding that the company is "disappointed" in the restatement.
BISYS also said it is in settlement talks with the Securities and Exchange Commission over questions related to its mutual fund services business. The settlement, including legal fees or other expenses, is expected not to exceed $25 million, the company said.
New York-based BISYS Group Inc. is an outsourcing solutions group whose insurance arm is home to an insurance wholesale distributor of commercial property-casualty insurance, long term care, disability and annuity products, and is a leading wholesale distributor of life insurance. The company also provides information services to the insurance industry and other financial services businesses.
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