US-based technology wholesaler made to delay the publication of its annual report after questions are raised about accounting practices of its UK subsidiary
Tech Data Corporation, the US-based wholesale distributor of technology products, has been forced to delay the filing of its latest annual report after regulators queried the projected results from its previously issued financial statements over the last three years.
The US Securities and Exchange Commission had earlier in March raised concerns regarding the reporting over the last three years of the company, and specifically statements made by the firm’s UK subsidiary’s accounting practices. It is thought that the concerns centre on the quarterly and annual financial statements for 2011 and 2012.
Tech Data, which is headquartered in the Tampa Bay area, says it is likely that the adjusted financial statements will see net income drop by around $25m to $33m over the three years. Previous financial statements had shown the company had net income of $206.4m for the 12 months ending on 31 January. The firms Audit Committee of the Board of Directors said it would be restate the financials after discussing the matter with accounting firm Ernst & Young.
The company has also begun an internal investigation about how the irregularities might have come about. Because of this investigation, the company says it is unsure of when it will be ready to file its latest annual report.
Tech Data also expects NASDAQ’s Listing Qualifications Department to contact it with regards to its late report filing, although it maintains that its stock should remained listed and tradable on the stock exchange.
Founded in 1974, Tech Data has grown to be one of the leading wholesale distributors of technology products in the world, with $24.4bn net sales reported in 2011, with 125,000 resellers in over 100 countries. It is also ranked 109th on the Fortune 500 list of America’s largest corporations.
The firm’s CEO, Robert Dutkowsky, said in a statement after the initial concerns were raised by the SEC: “We are working diligently to resolve this matter as soon as possible.”