Net profit could be reduced by up to £21.7 million as distributor restates some or all of its financial statements since 2011
Tech Data Corp is to restate some previously issued quarterly and annual financial statements to correct ‘improperties’ related to its UK subsidiary Computer 2000’s accounts.
The distributor will look at quarterly and annual results filed for the fiscal years 2011 and 2012, and some or all of the quarters of fiscal year 2013, including its Q4 and fiscal year 2013 earnings release dated March 3.
Tech Data said it estimes the restatement will reduce previously reported consolidated operating income by around $30 million ($19.7 million) to $40 million (£26.3 million), and that consolidated net income will be reduced by around $25 million (£16.4 million) to $33 million (£21.7 million).
The distributor said these estimates are based on currently available information and are subject to change during the course of its investigation.
It added that investors should no longer rely upon its previously released financial statements and other financial data relating to these periods and that as a result of the investigation, it is in the process of evaluating deficiencies in its internal controls over financial reporting.
Tech Data CEO Robert M. Dutkowsky said: “We are working diligently to resolve this matter as soon as possible. We do not plan to comment further during the course of the investigation unless any material developments arise.”