Montage Announces Report Summarizing Audit Committee Review
April 22 2014 - 2:35PM
Montage Technology Group Limited (Nasdaq:MONT) ("Montage
Technology" or "Montage" or the "Company"), a global fabless
provider of analog and mixed-signal semiconductor solutions
addressing the home entertainment and cloud computing markets,
today announced that the audit committee of the Company, with the
assistance of the law firm of Jones Day, as well as forensic
accountants from FTI Consulting, has reported on the results of the
review conducted to date, representing over 6,000 hours of work by
the audit committee's advisors.
Among other things, the report details various forensic
procedures performed to analyze a significant portion of the
Company's cash, cash equivalents, and short-term investment
balances with its financial institutions at various points in time.
In addition, the report details investigative tasks conducted to
analyze the Company's revenue and gross margins, which tasks
included written confirmations and in-person site visits with
selected participants in the manufacturing and supply chain and the
distribution and sales channel, including selected Fabs,
assembly/testing companies (OEMs), distributors, including LQW, and
end customers. Various analyses of financial and accounting
records were also performed. As noted in a report from these
advisors to the audit committee, based upon the investigative
procedures performed, the information considered to date and
subject to the limitations specified in the report:
- the cash, cash equivalents, and short-term investments
reflected in the Company's records and/or publicly reported by the
Company as of December 2011, 2012, and 2013 appear to be materially
accurate;
- no significant variances have been identified with respect to
the Company's reported revenue for years 2011, 2012, and 2013;
and
- the Company's gross margins for years 2011, 2012 and 2013
appear reasonable.
In addition, the audit committee's report notes that although
certain persons associated with these entities are known to members
of the Company's management, the review procedures performed to
date found no conclusive evidence that the Company owns or
otherwise has an inappropriate relationship with the entities
referred to in the Gravity Research reports as SMMT and LQW.
Based upon the audit committee's report, the Company continues
to believe that the allegations by Gravity Research lack merit, and
the Company therefore does not anticipate any changes to its
previously reported financial results. The audit committee, in
consultation with its outside legal and accounting advisors and the
Company's independent auditors, is evaluating what additional
review procedures are necessary or appropriate for the audit
committee's review of the allegations in order to be able to file
the Company's Form 10-K for the year ended December 31,
2013. The Company and the audit committee are continuing to
work diligently on this matter, and the Company expects to file its
annual report on Form 10-K as soon as practicable following
completion of the audit committee's review.
About Montage Technology
Montage Technology is a global fabless provider of analog and
mixed-signal semiconductor solutions currently addressing the home
entertainment and cloud computing markets. In the home
entertainment market, Montage's technology platform enables the
Company to design highly integrated end-to-end solutions with
customized software for set-top boxes. These solutions optimize
signal processing performance under demanding operating conditions
typically found in emerging marketing environments. In the cloud
computing market, Montage offers high performance, low power memory
interface solutions that enable memory intensive server
applications. Its technology platform approach allows Montage to
provide integrated solutions that meet the expanding needs of
customers through continuous innovation, efficient design and rapid
product development. For more information regarding Montage please
visit the Company's website at www.montage-tech.com.
Forward-Looking Statements
This press release contains "forward-looking" statements about
the Company's plans, expectations and beliefs, including regarding
the timing and anticipated filing of the Company's 10-K, the timing
and completion of and determinations with respect to the Company's
audit and the audit committee's review and anticipated financial
results. Forward-looking statements can be identified by
terminology such as "will," "should," "expects," "anticipates,"
"future," "intends," "plans," "projects," "predicts," "believes,"
"estimates," "forecasts," "may" and similar statements, which are
subject to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements may
differ materially from actual results due to a variety of factors,
including if the audit committee, its advisors, or the Company's
independent auditors require additional time or procedures prior to
completion of the Annual Report, or if the Company determines it
requires additional time to complete and review the Annual Report
on Form 10-K in light of any determinations from the ongoing review
or otherwise, if NASDAQ does not accept the plan, or other factors
described under the caption "Risk Factors" in our most recent
quarterly report on Form 10-Q and other filings with the U.S.
Securities and Exchange Commission. We undertake no obligation to
update these statements as a result of new information or future
events, except as may be required by law.
Company Contact: Montage Technology Mark Voll,
CFO P: 408-982-2780 or 86-21-6128-5678 x8618 E:
ir@montage-tech.com
Investor Relations Contact: Shelton Group
Leanne Sievers, EVP P: 949-224-3874 E: lsievers@sheltongroup.com
Matt Kreps, Managing Director P: 972-239-5119 ext. 125 E:
mkreps@sheltongroup.com
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