Tech Data to close lid on accounting nightmare TOMORROW
Distie giant spared NASDAQ de-listing, to get house in order before D-Day
Tech Data is about to wake up from the restatement nightmare that has troubled senior execs for nearly 11 months when it reports delayed fiscal '13 numbers tomorrow.
The world's second largest tech wholesaler revealed in March that it discovered errors in vendor accounting which could wipe up to $33m off its bottom line for three years worth of financials.
And then began the long drawn-out process of beancounters poring over the books, shadowed by more beancounters.
The finance department underwent a make-over with some staff leaving, and EMEA CFO Marco Preda landed in Blighty along with his generals to fill roles of staff that were suspended.
Deadlines were handed down by NASDAQ for Tech Data to file restated accounts for fiscal '11, '12 and "some or all quarters" for fiscal '13 that ended January last year – but they came and went.
A NASDAQ Panel granted Tech Data one last chance, until the end of March, to get its records up to date and filed or be booted from the stock exchange, something the distributor will be able to comply with.
According to a Form 8-K that Tech Data filed with the SEC, "On 5 February 2014, after the close of the market, the company intends to file with the SEC its Annual Report on Form 10-K for the fiscal year ended January 31, 2013."
The Annual Report will include restated numbers for the year and "describe the results of the independent investigation conducted by the Audit Committee".
The distributor added that it will also file with the SEC the restated numbers for the other fiscal years, and will actually also include results for fiscal '09 and '10.
But the cumulative profit reduction for all of the fiscals will remain within the $25m to $33m region that Tech Data previously forecast.
In a separate investigation by the Regional Inspection Unit of Spain's taxing authority, Tech Data revealed it will take a $41m charge for fiscal '13, connected to the way its local country subsidiary treated VAT.
The distie is appealing against a ruling by the Spanish courts that it was not properly collecting and remitting VAT, but conceded the risk that the judgment will be upheld has "significantly increased".
The total exposure facing Tech Data is circa $55.6m including "various penalties and interest". ®