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. ®