SOURCE: Sutron Corporation

Sutron Corporation

March 31, 2010 14:50 ET

Sutron Reports Notification of Late Filing

STERLING, VA--(Marketwire - March 31, 2010) -  Sutron Corporation (NASDAQ: STRN), today announced that it requires additional time to finalize its fourth quarter statements and Annual Report on Form 10-K for the year ended December 31, 2009 and has filed with the Securities and Exchange Commission on Form 12b-25, Notification of Late Filing.

This delay results principally from the significant demands on our management in identifying and correcting errors relating to inventory standard costs for the years ending December 31, 2006, December 31, 2007 and December 31, 2008 and providing our auditors with supporting information relating to the restatement of the financials for those years. We expect to file our Form 10-K on or before April 15, 2010, the fifteenth calendar day following the prescribed due date.

As previously described in our Current Report on Form 8-K filed on March 25, 2010, we announced that errors relating to inventory standard costs that were set in excess of inventory purchase costs resulted in an overstatement of inventory values as of December 31, 2006, December 31, 2007 and December 31, 2008. Cost of sales was understated for the years ended December 31, 2006 and December 31, 2007. Cost of sales was overstated for the year ended December 31, 2008. The estimated amounts to be restated are as follows:

Year Ended Estimated Decrease in Inventory Value Estimated  Increase (Decrease) in Cost of Sales
December 31, 2006 $121,000 $121,000
December 31, 2007 $339,000 $218,000
December 31, 2008 $222,000 ($117,000)

The estimated effect of the cost of sales adjustments on earnings will be to decrease net income by approximately $75,000 for the year ended December 31, 2006, to decrease net income by approximately $142,000 for the year ended December 31, 2007, and to increase net income by approximately $82,000 for the year ended December 31, 2008.

About Sutron Corporation

Sutron was founded in 1975 and is headquartered in Sterling, Virginia. Sutron designs, manufactures and sells hydrological, meteorological and oceanic monitoring products, systems, software and services to a diversified customer base of federal, state, local and foreign governments, engineering companies, universities and hydropower companies. 

Safe Harbor Statement

The statements in this press release that relate to future plans, events or performance are "forward-looking statements" within the meaning of the Private Securities Litigation Act of 1995. Forward-looking statements include without limitation any statements regarding our expected future financial position, results of operations, cash flows, financing plans, business strategy, products and services, competitive positions, growth opportunities, plans and objectives of management for future operations, as well as statements that include words such as "anticipate," "if," "believe," "plan," "estimate," "expect," "intend," "may," "should" and other similar expressions are forward-looking statements. All forward-looking statements involve risks, uncertainties and contingencies which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements. Factors that may cause actual results to differ materially from those in the forward-looking statements include those set forth in our filings with the SEC, including the disclosure under the heading "Business" and "Management's Discussion and Analysis" in the Company's Annual Report on Form 10-K filed on March 31, 2009. We are under no obligation to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise.

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