HIALEAH, FL -- Simclar Inc., a contract electronics manufacturer, will restate its 2005 finances due to accounting errors in its Mexican operations.

The company stated that it is still investigating whether these errors will also affect its financial statements for the quarter ended March 31, 2006.
In a statement, the company said the errors relate to operations at its Brownsville, TX, and Matamoros, Mexico facilities. Problems were uncovered in sales and receivables due to the duplication of invoices (in Mexican pesos and in U.S. dollars) for products shipped to one customer, accounts receivable credits for products returned to these facilities, and with vendor invoices.

The company further said that despite the accounting errors its business is "fundamentally very strong and continues to expand and develop."

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