Bell Micro To Restate Earnings

The board of directors and an audit committee of the San Jose-based distributor determined that errors were made related to the payout to some former shareholders of OpenPSL, a June 2004 acquisition, to the foreign currency translation from foreign acquisitions and accounting for some accrued employee benefits for its Brazilian subsidiary.

"Management also believes that these changes, which are primarily non-cash, do not adversely impact the underlying economics the company has reported in overall business performance," according to a statement by Bell Microproducts.

"The Company continues to execute on its strategy of growth and margin expansion in the sale of storage products and services to enterprise, industrial and commercial accounts."

Shares of Bell Microproducts closed Thursday at $6.70, up 2 cents per share.