Tech Data delays annual report filing

CLEARWATER— Tech Data Corp. will delay filing its annual report for the year ended Jan. 31, because it needs more time to complete its financial statements, including restatement of previously filed financials, the company told the Securities and Exchange Commission. Tech Data (symbol: TECD, recent price: $45.02) says the SEC has requested information from the company, and it “intends to cooperate with such request,” the firm says in a statement.

On March 21, the company announced it would restate some or all of its previously issued quarterly and audited annual financial statements for fiscal years 2011 and 2012 and some or all of the quarters of fiscal year 2013. This includes its fourth quarter and fiscal year 2013 earnings released March 4. The firm says its Audit Committee of the Board of Directors made the decision to restate financials on the recommendation of management and in consultation with its accounting firm, Ernst & Young LLP.

The company says it needs to restate financials to correct improprieties regarding how its U.K. subsidiary reflected vendor accounting. The firm estimates that the restatement will reduce previously reported net income by $25 million to $33 million over the three fiscal year periods. For the 12 months ending Jan. 31, Tech Data reported net income of $206.4 million, according to previous filings.

Tech Data says it “cannot predict” when it will complete the restatement, but expects to miss the permitted 15-day extension from the April 1 due date. It says it expects to receive a notice of deficiency from the NASDAQ Listing Qualifications Department for not meeting the deadline, but it will submit a plan to regain compliance as quickly as possible. The company says it expects its stock will continue trading on the NASDAQ during this period.

The Clearwater-based company, which is one of the world's largest wholesaler distributor of technology products, says it's investigating the matter, evaluating deficiencies in its internal controls and has hired independent counsel to aid in the investigation.