Faro Technologies, Inc.’s third quarter disclosure describes a not-yet-effective deferred or non-prosecution agreement with the U.S. Department of Justice and the Securities and Exchange Commission.
In March 2006, Florida-based Faro — which designs, develops, and markets software and portable, computerized measurement devices — self-disclosed to prosecutors potential violations in China of the U.S. Foreign Corrupt Practices Act. On October 30, 2007, it said it expects to pay $2.65 million in estimated fines and penalties to resolve the case. It also said this:
“The Company anticipates that resolution of the FCPA matter will not result in formal criminal charges being filed against it by the DOJ. The Company expects, in addition to monetary sanctions, the final resolution of the FCPA matter with the SEC and the DOJ will include continuing obligations with the SEC and the DOJ with respect to monitoring, compliance with the FCPA and other laws, full cooperation with the government, and the adoption of a compliance code containing specific provisions intended to prevent violations of the FCPA.
“The Company expects that its monitoring obligations will continue for a period of two years starting with the final resolution of the FCPA matter with the SEC and the DOJ. The Company preliminarily estimates that the costs associated with the monitoring obligations to be in the range of $1 million to $2 million. However, because the scope of the monitoring obligation has not yet been determined and the outside monitoring firm has not yet been selected, the actual costs incurred may vary from the Company’s preliminary estimate. The Company intends to provide updates with respect to the monitoring costs when additional information is available to the Company.”
Faro Technologies, Inc. trades on NASDAQ under the symbol FARO.
View Faro’s October 30, 2007 Press Release Here.