Immersion, the San Jose provider of hardware and software “touch” technologies used in digital devices said in a filing today that its audit committee has begun an internal investigation into “certain previous revenue transactions in its Medical line of business. The company said the investigation is being conducted “with the assistance of outside counsel”.
The company did not rule out the possibility of a restatement of past financial reports saying that its audit committee “has not yet determined the impact, if any, to Immersion’s historical financial statements.”
The company also warned that, while it is presently current in its financial filings and intends to be on time with its 10-Q quarterly report for its most recent quarter. “it is possible that as a result of the investigation, Immersion would be unable to file its quarterly report and announce financial results in a timely manner.”
Immersion’s medical division–which supplies simulation technologies used for medical training and testing–generated $14.8 million in 2008, accounting for about 40 percent of total sales. In March Immersion announced it was relocating its medical operations from Gaithersburg, Maryland to San Jose.
Shares of Immersion were hammered Wednesday, falling $1.14, or 23.1 percent, to $3.80.