In a sign that points to continuing struggles by the medical transcription management company MedQuist, Amsterdam-based Royal Philips Electronics indicated it may be looking to sell its 70% ownership of the company.
MedQuist, a publicly traded company headquartered in Mount Laurel, N.J., underwent mandatory Securities and Exchange Commission accounting reviews in 2003 as a result of whistle-blower accusations that charged the company with improper billing practices. In 2004, the company was removed from the Nasdaq exchange for failing to file earnings reports.
Until July 5, Medquist had not filed an earnings report with the SEC since 2002. Reports filed on July 5 were for the years 2003 through 2005, and the most recent year indicated a net loss of $112 million on $353 million in revenue. Company officials attributed the majority of the loss to investigation, legal proceedings and settlement costs associated with the 2003 investigation.
Officials at Royal Philips said the parent company will experience a $47.7 million charge against profits in its second quarter as a result of MedQuist's losses. The company doesn't expect the charge to affect its overall financial outcome for the year.