Clock ticking for IT distie Tech Data to end accounts probe
NASDAQ sets September deadline to file results, regain compliance
IT channel biz Tech Data has until September to get its house in order - because that's when it must file all its delayed financial reports to regain compliance with NASDAQ rules.
The world's second largest tech distributor missed the deadline for filing its Q1 2013 results this month, some 45 days after the end of the quarter which closed on 30 April.
It is still investigating accounting irregularities relating to vendor rebates at its UK subsidiary Computer 2000, and this has held up publication of its financial figures.
The wholesale titan confirmed it got the nod from NASDAQ that it is no longer compliant with stock market regulations, but it has been granted an exception.
Tech Data must inform the stock exchange of its plan to file the document for Q1 by no later 2 July, and must report results for fiscal 2013 ended January and Q1 on or before September.
In the interim period the company will remain listed on the stock exchange.
The accounting probe could result in Tech Data restating multi-year results, wiping up to $33m in net profit off the bottom line for fiscal 2011, 2012 and some or all of 2013.
The distributor's chief financial people in Europe swooped into the UK offices, and to date a bunch of employees have been suspended.
Back in May, C2000 UK boss Peter Hubbard told sales staff that their commissions for the past three months will be halved, but the firm backed down days later, say sources.
It seems management didn't feel it was ethical nor moral, and one person at the firm suggested it may not have been legal either. ®