Technology distributor Tech Data (TECD) saw its shares on Nasdaq halted shortly after market close, before the company announced it will restate some or all of the quarters of fiscal years 2011 and 2012, which each ended in January, and will restate some portion of fiscal 2013, which ended this past January, including the report it put out March 4th, after determining there were errors with how its U.K. subsidiary “reflected vendor accounting.”
Those restatements may reduce Tech Data’s operating income by $30 million to $40 million, and reduce its net income by $25 million to $30 million, over the three-year period, the company estimates.
Tech Data made $243 million in net income in the year ended in January, on an adjusted basis, and a $194 million in fiscal ’12 and $166 million in fiscal ’11.
The shares are indicated to start trading again at 5 pm, Eastern time.
Tech Data competes with other distributors and integrators, such as Ingram Micro (IM), and Avnet (AVT).
Update: Tech Data shares have resumed trading and are now down $5.55, or 11%, at $44.
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