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Tech Data granted one more stay of execution by NASDAQ
Time to get accounts in order or get off the stock exchange, distie admits
The NASDAQ Panel has granted Tech Data a final extension until the end of March to get its accounts up-to-date or face an embarrassing and costly de-listing.
The tanker-sized wholesaler confirmed this in a brief filing today that it had until the 27th of that month to report restated results for each quarter in fiscal '14 ending January, as well as fiscal '11 and '12.
"The company must regain compliance with all the applicable requirements for continued listing on the NASDAQ Stock Market, including filing its outstanding annual and periodic reports with the SEC on or prior to March 27," Tech Data stated.
Quarterly results need to be filed with the SEC 40 days after the close of the period to keep the distie compliant with the stock market regulations.
As world + dog knows, the US-based company went public in March over "vendor accounting" errors, which is believed to be related to the return merchandise authorisation process and rebates.
Some middle management staff in the finance function were suspended as Europe CFO Marco Preda parachuted into the UK organisation to check out the procedures.
Auditors also took over the board room as they pored through the books to uncover the reasons for the anomalies.
Tech Data previously estimated that restating the multi-year results will wipe up to $33m off its bottom line.
As revealed by us last month, Tech Data has brought in company veteran Kevin Corcoran as director of credit services and after sales management in a bid to further tighten the processes. ®