But officials say $9 million earnings plunge should be a one-time event now that controls are in place.
Officials at medical supplies manufacturer Arrow International Inc. said that compliance with Section 404 of the Sarbanes-Oxley Act played a big role in the company's huge drop in earnings during the most recent quarter. Section 404 requires companies to document their internal controls.
Arrow reported that net income for the quarter ended August 31 decreased 65.3 percent, to $5 million, down from $14.4 million recorded in the same quarter last fiscal year. The drop was "primarily from the Company's ongoing evaluation of internal controls over financial reporting related to Section 404."
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