September 25, 2014 by Alexander Soule
Orthofix International CFO Mark Heggestad steps down after just 6 months as a 3-year financial restatement deepens on new evidence of inventory control problems.
Orthofix (NSDQ:OFIX) CFO Mark Heggestad is stepping down just 6 months into his tenure, even as the medical device company’s 3-year financial restatement yesterday deepened on new problems with its inventory controls.
Orthofix promoted its chief accounting officer Doug Rice to replace Heggestad, who took over May 9 from interim CFO David Ziegler. Longtime CFO Emily Buxton had been replaced in April after a decade as Orthofix’s financial chief. Heggestad, who is slated to stay on as an outside consultant, is leaving due to “personal circumstances,” Orthofix said.
The Lewisville, Texas-based firm (which is domiciled in Curacao) is an the middle of a project to restate 3 years worth of financial statements that’s already turned up changes to net sales totaling $20 million and a cumulative decrease in net income of $5 million. Yesterday the company revealed that the audit also found reporting inconsistencies on at least $25 million worth of spinal fixation devices on consignment with hospitals and other customers. More inventory needs to be physically counted, a process that could take several weeks, Orthofix said, meaning yet another delay in restating financial statements for 2011 through the 1st quarter of 2014.