March 1 (Reuters) - Diagnostic company Alere Inc said on Wednesday it would delay filing its 2016 annual report and that it has not yet fixed a material weaknesses with respect to its revenue recognition practices disclosed in its 2015 annual report.
The company is reviewing revenue recognition practices at its South Korean and Japanese units as well as related "inappropriate conduct" at its South Korea unit, Alere said in a regulatory filing. (bit.ly/2lSHn3o)
Alere said it expects its 2016 annual report will show that the company’s disclosure controls and procedures and internal control over financial reporting were not effective as of Dec. 31, 2016.
The company said in August that its 2015 annual report, which was also delayed, had a material weaknesses related to its revenue recognition practices.
That issue along with a laundry list of others, including probes into Alere’s billing and foreign sales practices, led Abbott Laboratories in December to move to end its plan to buy the diagnostic company.
In July, at the behest of the U.S. health regulator, Alere recalled a device used to monitor levels of a widely used blood thinner because it was found to generate faulty results. (Reporting by Akankshita Mukhopadhyay in Bengaluru; Editing by Savio D‘Souza)