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EUniverse to Restate Results From Its 2nd, 3rd Quarters

May 07, 2003|From Bloomberg News

EUniverse Inc., an interactive entertainment network, said Tuesday that its fiscal second- and third-quarter earnings and sales were overstated.

The inflated results in the periods ended Sept. 30 and Dec. 31 may have been caused by some improperly processed transactions. An investigation is continuing, EUniverse said.

A restatement of results for the two quarters will lead to a material change, the Los Angeles company said, without providing specific estimates. First-quarter results also may be changed. EUniverse President Brett Brewer didn't return calls seeking comment.

Final results for the year ended March 31 will be provided after an audit is completed.

EUniverse, which runs the Flowgo entertainment Web site, the MadBlast comedy site and dating site Cupid Junction, last week replaced its independent auditors, Merdinger, Fruchter, Rosen & Co., with Moss Adams. The change did not involve any disagreements and wasn't related to the discovery of the accounting issues, the company said.

Nasdaq halted trading in EUniverse shares Tuesday and said the shares would remain halted until the company has supplied additional information. The stock fell 12 cents to $3.62 on Monday.

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