ModusLink to delay filing annual report
WALTHAM, Mass. (AP) — ModusLink Global Solutions Inc., which manages corporate supply chains, on Monday said the filing of its annual report for the year ended July 31 will be delayed as the company works through a restatement of past results.
The Waltham, Mass., company announced in June that its CEO was leaving and it was restating results since fiscal 2009.
The delayed reports mean ModusLink isn't in compliance with Nasdaq Stock Market rules, but the company said it had submitted a compliance plan to the exchange and has received an extension until Dec. 10.
The company said in June that an investigation by its audit committee found that certain client contracts were not aligned correctly with their appropriate discounts.
The restatements are expected to reduce the company's revenue by about $20 million to $30 million over a period in which ModusLink reported revenue of $5.4 billion and a net loss of $213 million, including $232 million in one-time charges. The company also expects the restatement to swell its net loss by a lesser amount.