GSI Commerce Intends to File Form 10-Q for Fiscal 2005 Third Quarter On or Before Nov. 15
KING OF PRUSSIA, Pa., Nov. 10, 2005 – GSI Commerce Inc. (Nasdaq: GSIC) announced today that it has filed a Form 12b-25 with the Securities and Exchange Commission (SEC) to extend the company’s filing deadline for its Form 10-Q quarterly report for the fiscal 2005 third quarter. The company is targeting to file its Form 10-Q with the SEC on or before Nov. 15.
GSI Commerce said in its filing today that the company is unable to file its fiscal 2005 third quarter Form 10-Q within the prescribed time period because the company needs up to the extra five days as permitted by Rule 12b-25 to process and record adjustments resulting from the resolution of two issues disclosed by the company on Oct. 26 and described below.
On Oct. 26, GSI Commerce announced it was postponing the release of its fiscal 2005 third quarter operating results and conference call to allow for more time to complete the evaluation of two issues. The first issue was an independent investigation regarding certain credits recorded as part of the company’s fiscal 2004 fourth quarter results. The second issue was the failure of a systemic control used to validate a component of the company’s general ledger balance for accounts payable and the resulting change to a manual calculation to validate this balance. The company has concluded its investigation related to the credits referred to above and completed the manual calculation to validate the general ledger balance for accounts payable. The company expects that when it processes and records the adjustments resulting from the resolution of these issues, the adjustments will be within the dollar amounts disclosed in the company’s Oct. 26 news release.
About GSI Commerce
GSI Commerce is a leading provider of e-commerce solutions that enable retailers, branded manufacturers, entertainment companies and professional sports organizations to operate e-commerce businesses. We provide solutions for our partners through our integrated e-commerce platform, which is comprised of three components: core technology, supporting infrastructure and partner services. We either operate, or will operate pursuant to signed agreements, all or portions of the e-commerce businesses for approximately 50 partners.
Forward-Looking Statements
All statements made in this release, other than statements of historical fact, including the resolution of the issues discussed earlier in this news release, are forward-looking statements. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “will,” “would,” “should,” “guidance,” “potential,” “continue,” “project,” “forecast,” “confident,” “prospects,” and similar expressions typically are used to identify forward-looking statements. Forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the business of GSI Commerce and the industries and markets in which GSI Commerce operates. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions, which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or implied by these forward-looking statements. Factors which may affect GSI Commerce’s business, financial condition and operating results include the estimated charges and credits that may be recorded as a result of the issues discussed earlier in this news release, the effects of changes in the economy, the impact of FASB 123(R), consumer spending, the financial markets and the industries in which GSI Commerce and its partners operate, changes affecting the Internet and e-commerce, the ability of GSI Commerce to develop and maintain relationships with strategic partners and suppliers and the timing of its establishment, extension or termination of its relationships with strategic partners, the ability of GSI Commerce to timely and successfully develop, maintain and protect its technology and product and service offerings and execute operationally, the ability of GSI Commerce to attract and retain qualified personnel, the ability of GSI Commerce to successfully integrate its acquisitions of other businesses, if any, and the performance of acquired businesses. More information about potential factors that could affect GSI Commerce can be found in its most recent Form 10-K, Form 10-Q and other reports and statements filed by GSI Commerce with the SEC. GSI Commerce expressly disclaims any intent or obligation to update these forward-looking statements, except as otherwise specifically stated by GSI Commerce.
Contact:
Michael Conn
Senior Vice President, Corp. Development
tel: 610-491-7002
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Greg Ryan
Director, Corp. Communications
tel: 610-491-7294
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