Mouse-slinger Logitech: Gloves are off, number probe over
Restating fiscal '11 and '12, 'our figures can't be relied on'
Human-computer interface slinger Logitech’s three month self-examination into suspected financial blunders has concluded and the outcome could have been worse, much worse.
The keyboard, mouse and pointer slinger said in May that it, along with the SEC, was conducting a probe into previous financial restatements regarding warranty accruals, and three years’ worth of transactions with a certain distie.
The findings are in - and Logitech confirmed today that historic filings for fiscal ’11 and ’12 can “no longer be relied on”, which may not be music to the ears of most investors.
“This is due to an accounting misstatement for inventory valuation reserves for Logitech’s discontinued Revue product,” it stated.
In plainer English, this is an admission that it booked in inventories incorrectly.
As such, numbers for the years in question will be restated in a 10-K filing with the SEC, the net effect of which will be a reduction in operating income for fiscal ’11 and a corresponding increase in operating income for fiscal ’12.
“In connection with the restatement, there will be other corrections to the financial statements, none of which are material to the respective years. Logitech is finalising the total amount of these adjustments,” the company said. ®