Wireless Facilities Appoints Grant Thorton, LLP as New Independent Auditors
SAN DIEGO, June 13, 2005 /PRNewswire-FirstCall via COMTEX/ -- Wireless Facilities, Inc. (WFI) (Nasdaq: WFII) announced today that it has dismissed KPMG, LLP as its independent registered public accounting firm for the fiscal year ending December 31, 2005, and has engaged Grant Thornton, LLP ("GT") as the Company's new independent registered public accounting firm. KPMG's reports on the Company's consolidated financial statements as of and for the years ended December 31, 2004 and 2003 did not contain an adverse opinion, nor were they qualified or modified as to uncertainty, audit scope or accounting principle. In addition, during the years 2003 and 2004 and through the period ending June 6, 2005 there were no disagreements with KPMG on accounting principles, practices or financial statement disclosure.
The Audit Committee of the Board of Directors of WFI elected to dismiss KPMG after considering a variety of factors. Included in these factors was the fact that, in the second quarter of 2005, the Company received over $1,000,000 in unexpected invoices from KPMG for additional fees. This represented a significant increase over previously anticipated fees of approximately $1,900,000, which had already been paid by the Company. Prior to the receipt of the first unexpected invoice, WFI had not received notice from KPMG that the Company had incurred material additional costs for services performed for which additional invoices would be forthcoming. In order to achieve a smooth audit transition to GT, the Company negotiated a final settlement with KPMG for all outstanding billings of approximately $1,000,000 and KPMG agreed to provide GT with necessary access to the historic audit workpapers in order for them to begin work on the WFI 2005 audit engagement. As a result, the Company will incur an unanticipated pre-tax charge of approximately $1,000,000 in the second quarter of 2005 related to these unexpected KPMG invoices. Additional information has been provided in the Company's Form 8-K filing made with the Securities and Exchange Commission.
About Wireless Facilities, Inc.
Headquartered in San Diego, CA, WFI is an independent provider of systems engineering, network services and technical outsourcing for the world's largest wireless carriers, enterprise customers and for government agencies. The Company provides the design, deployment, integration, and the overall management of wired and wireless networks which deliver voice and data communication, and which support advanced security systems. WFI has performed work in over 100 countries since its founding in 1994. News and information are available at www.wfinet.com. (code:WFI-mb)
Notice Regarding Forward-Looking Statements
This news release contains certain forward-looking statements including, without limitation, expressed or implied statements concerning the Company's expectations regarding future financial performance, its anticipations with respect to cost estimates under existing contracts and anticipated market developments that involve risks and uncertainties. Such statements are only predictions, and the Company's actual results may differ materially. Factors that may cause the Company's results to differ materially include, but are not limited to: the receipt of additional invoices for audit related services that the Company is not currently anticipating. A complete description of the Company's risk factors are more fully discussed in the Company's Annual Report on Form 10-K filed on March 31, 2005 and in other filings made with the Securities and Exchange Commission.
Media Contact: Michael Baehr VP of Communications Wireless Facilities, Inc. 858.228.2799 Direct michael.baehr@wfinet.com Investor Contact: Rochelle Bold Senior VP of Corporate Development & Investor Relations Wireless Facilities, Inc. 858.228.2649 Direct rochelle.bold@wfinet.com
SOURCE Wireless Facilities, Inc.
Media, Michael Baehr, VP of Communications, +1-858-228-2799, michael.baehr@wfinet.com, or Investors, Rochelle Bold, Senior VP of Corporate, Development & Investor Relations, +1-858-228-2649, rochelle.bold@wfinet.com, bot of Wireless Facilities, Inc.
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