Auditors for Cooper Companies, a diversified medical products firm that also operates six psychiatric hospitals in Pennsylvania and Texas, said the company's ongoing problems raise "substantial doubt" about its ability to continue as a "going concern."
The opinion on Fort Lee, N.J.-based Cooper's financial health was included in the company's annual report for its fiscal year ended Oct. 31, 1993.
Last September, Cooper agreed to pay $12 million to $30 million during the next 10 years to settle litigation related to breast implants sold by two former subsidiaries.
In addition, the company and its former co-chairman, Gary Singer, have been facing indictments related to an alleged insider-trading scheme involving low-rated, high-interest bonds.
Earlier this month, Mr. Singer was found guilty on 21 counts in the case. The company was acquitted on charges of conspiracy and aiding and abetting, but it was found guilty on six counts of mail fraud and one count of wire fraud based on Mr. Singer's conduct, Cooper executives said. Sentencing is expected to take place next month.
For its fiscal year ended Oct. 31, 1993, Cooper reported a net loss of $47.1 million, or $1.55 per share, compared with a loss $26.6 million, or 96 cents per share, last year. Revenues grew 46% to $92.7 million.