Lazare Kaplan has
released incomplete financial results for the year 2010, the result of
“material uncertainties” that are impacting its ability to “maintain its operations.”
According to its latest filing, LKi’s inability “to timely resolve the Material Uncertainties has adversely impacted the Company’s ability to transact business in the ordinary course to the same extent and in the same manner as it did previously … [including] the ability of the Company to maintain and / or expand its operations.
LKI anticipates net sales
of approximately $152.4 million for fiscal 2010, as compared to net sales of
$192.4 million for fiscal 2009.
“During Fiscal 2010, the Company continued to focus its efforts on cash flow
while reducing operating costs and manufacturing overhead,” the filing noted. “Gross
margins remained under significant pressure as a result of price competition,
overhead absorption and inventory valuation considerations.”
LKI’s continuing inability to file complete
financial reports recently caused it to get delisted
from the New York Stock Exchange.