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Blundering Tech Data faces NASDAQ boot over Computer 2000 accounts
Vast distributor blows through deadline, begs for more time
Tech Data is facing a delisting from the NASDAQ unless it can bring its financial house in order, the distributor has confirmed.
The world's second largest tech wholesaler had until 26 September to file its fiscal 2013 Form 10-K - an annual report required by the SEC - and numbers for first half of this current financial year.
The company is working to resolve accounting errors discovered in its UK subsidiary Computer 2000 which came to light earlier this year.
These errors relate to the way that C2000 "reflected vendor accounting" and could wipe up to $33m in profits off fiscal 2011, 2012 and part or all of 2013.
Subsequently, members of the UK finance team were suspended as Tech Data's chief European bean counter Marco Preda swooped on the office in Blighty to probe the cause, along with a bunch of auditors.
Florida-based Tech Data intends to "request a hearing before the panel" to put forward its roadmap for "regaining compliance" and to ask for continued listing in the interim.
NASDAQ regulations state that quarterly reports must be filed within 45 days of a fiscal period closing.
This request from Tech Data gives the distributor a 15 calendar day - from the date of request on 2 October - stay of execution in terms of delisting.
The panel, said Tech Data, has the discretion to grant an extension to 27 March 2014 - 360 days from the original due date for fiscal '13, which ended in January.
"There can be no assurance that the panel will grant the company's request for a stay of delisting pending hearing or its request to extend the time within which to regain compliance with the rule and for continued listing," Tech Data stated. ®