Major Reduction in Earnings Forecast at AMS Advanced Marketing Services continues to suffer from “substantial fees and expenses” related to government investigations of some its accounting practices, plus the company has “changed its sales approach regarding how it handles the disposition of excess inventory.” The latter has resulted in “an increase in reserves taken on non-returnable or partially returnable inventory,” and has led the company to significantly reduce its earnings prediction. A further explanation refers to the company’s “reorganization of its distribution centers” and says that “estimated publisher incentive income declined.” AMS warned investors yesterday that it now expects to […]
