Software Firm Hires New Auditor Wismer Martin Corp. Selects Bdo Seidman As Cpa Firm

Wismer Martin Corp. has found a new auditor.

The company announced Wednesday it has retained BDO Seidman as its independent certified public accountants and auditors.

“Seidman will perform an audit of the company’s June 30, 1995, financial statements and will assist the company in conjunction with the registration statement for the company’s previously announced stock offering,” a Wednesday news release stated.

The company also announced it has renegotiated and extended its line of credit with Seafirst Bank.

Those two items were good news for the Spokane software company. The rest of the Wednesday announcement was not.

The company projected that its pretax losses for the third quarter of fiscal 1995, ended March 31, will be about $800,000. Actual results will be released in late May.

The estimate follows a $700,000 second-quarter loss. But the news release says, “The company reaffirms its plan to return to profitability in the fourth quarter.”

“The business has been stabilized,” Ron Holden, Wismer’s chief executive, said in the release. “The benefits of restructuring, implemented during the last quarter, are beginning to take effect in the company’s performance.”

Wismer Martin has been struggling for several months. At the company’s annual meeting March 21, Holden told shareholders the company is preparing a stock offering of $2 million to infuse the company with cash.

A week later, Wismer Martin’s longtime auditor, Coopers & Lybrand, abruptly resigned. In a statement to the U.S. Securities and Exchange Commission, the auditing firm expressed doubt whether it could certify Wismer Martin as a “going concern” if it had to restate the company’s 1994 audit for purposes of the stock offering.

Since that time, the stock offering has been in limbo.

“We can’t file (the stock registration) until we have the documents complete, and we are in the process of preparing the documents,” Holden said in an interview Tuesday.