Tech Data Corp. (Nasdaq: TECD) (the “Company” or “TECD”), a Florida corporation based in Clearwater, Florida, has announced that the Audit Committee of its Board of Directors, on the recommendation of management, and after consultation with its auditor Ernst & Young LLP, will
restate some or all of its previously issued quarterly and audited annual financial statements for the fiscal years 2011 and 2012, and some or all of the quarters of fiscal year 2013, including our fourth quarter and fiscal year 2013 earnings release dated March 4, 2013. Accordingly, investors should no longer rely upon the Company’s previously released financial statements and other financial data relating to these periods.
The Company anticipates that the restatement will be made to correct improprieties primarily related to how the Company’s U.K. subsidiary reflected vendor accounting. The Company estimates that the restatement will reduce previously reported consolidated operating income by an aggregate amount of approximately $30 million to $40 million, and consolidated net income by an aggregate amount of approximately $25 million to $33 million, over the three fiscal year periods.
(Emphasis added). In response to this revelation, securities of TECD were trading down over 9% to 45.00 in after hours trading on March 21, 2013. Shares of TECD stock traded as high as $57 in February 2012. The Company has a float of 36 million shares.
TECD is a worldwide distributor of technology products. TECD is managed in two geographic segments: the Americas (including North America and South America) and Europe. According to TECD’s website, it fiscal year 2011, it sold “$24 billion of IT products to more than 125,000 technology resellers in over 100 countries.” TECD’s CEO joined the Company in 2006.