Tech Data is fighting to maintain its Nasdaq listing after it failed to file its numbers on time and is hoping it can gain additional time after requesting a meeting where it plans to put its side of the story across.
The distributor has got into this situation as a result of failing to file a Form 10-Q for its second quarter results for the three months that ended 31 July and continues to work through a restatement of its financial position after it discovered accounting irregularities at its UK operation Computer 2000 back in March.
The irregularities relate to how the Computer 2000 reflects vendor accounting, and Tech Data revealed that the consequences were a need to restate its quarterly and audited annual financial results going back to 2011, which could hit net income by up to $33m over the past three fiscal years. The channel player has not only missed filing Q2 numbers but also deadlines for full-year results, to 31 January 2013, and Q1 for the three months to 30 April.
Having been warned in mid-September that it had to get a move on with filing the latest letter from Nasdaq has led to the distributor requesting a meeting to plead its case and try to gain some additional time.
"The company intends to timely request a hearing before the [Nasdaq Listing Qualifications] Panel. At the hearing, the Company will present its plan for regaining compliance with the Rule, and request continued listing pending its return to compliance. The hearing request automatically stays the delisting for a period of 15 calendar days from the date of the request. In addition, in connection with its request for a hearing, the Company will request that the Panel continue the stay of delisting until the conclusion of the hearing process," Tech Data stated.
"At the hearing, the Company will present its plan for regaining compliance with the Rule, and request continued listing pending its return to compliance," the statement from Tech Data continued.
But with the an extended deadline something granted at the discretion of the panel the distributor had to warn that it might not be given more time "within which to regain compliance with the Rule and for continued listing".