ProQuest is one of the major providers of genealogy information. Through its HeritageQuest Online division, ProQuest supplies images of U.S. census records, Revolutionary War Pension Applications, U.S. family and local history books and PERSI (PERiodical Source Index, an index of almost all genealogy articles ever published in hundreds of magazines). ProQuest made news on Thursday when said it intends to restate its financial statements for 1999 through 2004 and revise its results for the quarters of 2005, due to material irregularities in its accounting.
In a news release, the company said the irregularities mainly affect its information and learning division. Based upon its initial findings, the company said its deferred income and accrued royalty accounts were materially understated and its prepaid royalty account was materially overstated in previously issued financial statements.
The publisher of information and education solutions said the restatement will materially reduce earnings from continuing operations for many of the affected periods.
Kevin Gregory, the former Chief Financial Officer of ProQuest Company, resigned in mid-2005 and was replaced by Mr. Richard Surratt on November 2, 2005.