Tech distie Tech Data tears up last THREE years of profit numbers
Errors in UK arm's accounts wipe £21m off net profit
IT distribution giant Tech Data has ripped up its financial results for the last three years after discovering errors in its UK subsidiary's accounts.
The company revealed this morning it will recalculate the figures and publish new reports as a result of uncovering mistakes in "vendor accounting" by its Brit biz Computer 2000.
Tech Data, the second largest distie on the planet, said its new numbers for fiscal 2011, 2012 and "some or all quarters" of 2013 will cut between $25m and $33m (£16.4m and £21.7m) from its previously declared net profit for the wobbly period.
"The company anticipates that the restatement will be made to correct improprieties primarily related to how the company's UK subsidiary reflected vendor accounting," Tech Data stated.
Investors should "no longer rely" on the firm's previously released financial statements or data for the timeframe in question. It added the "preliminary estimates" are based on existing information, but are subject to change "during the course of the company's ongoing probe.
"As a result of this investigation, the company is in the process of evaluating deficiencies in its internal controls over financial reporting," the distributor added.
CEO Bob Dutkowsky said his biz was working to resolve the matter and would not make any further comment unless he found more bungled calculations on the books. ®