Distributor and custom system builder Systemax said Monday that it will be restating its financials for 2003 and for the first three quarters of 2004.
The Port Washington, N.Y.-based company is currently completing its reviews of those time periods, and will restate its historical results once finished, company officials said.
The restatements result from the discovery of errors in accounting for inventory at its United Kingdom subsidiary, the company said. As a result of those errors, Systemax has replaced the senior management of the subsidiary, and placed overall management of its U.K. business under control of its TigerDirect computer marketing operation.
Last month, Systemax reorganized its U.K. operations to cut about 100 employees, which company officials said would save the company about $3.4 million per year.
Systemax expects net income for the full year 2003 to be $2.5 million, or 9 cents to 10 cents per share, compared to the previously reported $5.6 million, or 16 cents per share. Net income for the first nine months of 2004 is expected to be $1.6 million, or 11 cents to 12 cents per share, compared to the original report of $5.8 million, or 16 cents per share.