Lazare Kaplan Delays Filing, Q3 Net Sales $29 Million

Lazare Kaplan International said on Wednesday that it has notified the Security and Exchange Commission (SEC) that it will be late in filing its quarterly report. The diamond company said that it continues its efforts to resolve what it calls "material uncertainties." It currently estimates net sales at approximately $28.9 million.

LKI is facing a number of financial issues. In its recent reports it is referring to material uncertainties concerning "the collectability and recovery of certain assets," as well as "the Company's potential obligations under certain lines of credit and a guaranty."

The company went on to state that as it is unable to assess the potential effect the resolution of these matters will have on its financial position, it has been unable to finalize its financial statements for Fiscal 2009 and subsequent periods.

LKI anticipates that its reported results of operations for the third quarter will reflect "significant changes from the corresponding period of the last fiscal year."

The company anticipates net sales of approximately $28.9 million and $126.1 million for the three and nine months ended February 28, 2010 as compared to net sales of $42.2 million and $161.7 million for the comparative prior year periods.