The Channel logo

News

By | Paul Kunert 13th September 2013 10:34

IT distie Tech Data must end accounts-unbungling probe within a fortnight

NASDAQ compliance D-Day edges ever closer for distie behemoth

NASDAQ-listed Tech Data has less than a fortnight to get its accounts in order and financial filings up to date, the distributor acknowledged last night.

The Florida-based broadline IT distribution giant discovered whopping great errors in its finance records at UK subsidiary C2000 back in March, which were related to blunders in "vendor accounting".

As a result, the company has made numerous suspensions in its finance department as it investigated the cause of the mistakes, which occurred between fiscal 2011 and some - or possibly all - of fiscal 2013.

Righting these wrongs could see up to $33m wiped off Tech Data's bottom line for those periods, which is a huge embarrassment to a company that was considered to be one of the tightest-run in the industry.

Tech Data delayed filing its 10-K annual financial report for fiscal 2013, ended 31 January, and its 10-Q forms for the first and second quarters of FY2014.

Under NASDAQ regulations a listed company must file such reports no longer than 45 days after a financial period ends to US watchdog the SEC. As a result Tech Data said it was "not in compliance with NASDAQ listing rule 5250.

The business said last night it has until 26 September to lodge its Form 10-Q for Q2 with the NASDAQ - an even more detailed analysis of the numbers.

"The company intends to file its update as soon as possible," said the firm. ®

alert Send corrections

Opinion

Love

Chris Mellor

Tandberg and Sphere3D deals offer hope after 18 bad ones
Fraud image
Openstack log

Features

No, silly... he was the fall guy for years of Finnish folly
Fraud image
Frodo and the Ring
Microsoft's strategy is to make Store apps popular. Good luck with that