Clearwater, FL-Based Tech Data Corp. said today that it will restate some of its financial results for the period of time covering the fiscal years of 2011, 2012, and 2013. According to the company, it has discovered “improprieties” with how its U.K. subsidiary reflected vendor accounting.
See more on this surprising announcement…find out how big the impact will be…
According to Tech Data, the restatements are expected to reduce net income by $25 million to $33 million over the three year period. Until such time as the company is able to produce new financials, Tech Data says that investors should not rely on their existing financial reporting for these periods.
Tech Data has launched an internal investigation into the situation and may discover that revisions will be further revised more or less than the amount they currently estimate. The company is also evaluating their internal control procedures over financial reporting.
“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,” Chief Executive Robert Dutkowsky said.
The company is expected to request a 15-day filing extension for their annual report for the fiscal year ended this past January.
As of 8:45PM Eastern time, shares of Tech Data stock had dropped 9.18% to $45 in after-hours trading.