OCZ: « On Track to Becoming Current With SEC Filings Before End of August »Update investors on restatement progres
This is a Press Release edited by StorageNewsletter.com on 2013.07.03
OCZ Technology Group, Inc. is updating investors on its restatement process.
"We know that our restatement efforts are top of mind for all investors. This process has taken longer than we expected due to a number of items. Complexity of the transactions, as well as resource issues, were the main drivers for the additional time needed. Rafael Torres, our new CFO, joined us in late March with significant restatement experience and has filled key financial leadership positions and improved the technical depth of the finance organization," stated Ralph Schmitt, CEO, OCZ. "Through these improvements, we have implemented a more rigorous review process that has also resulted in the identification of additional restatement items that have taken some time to review, document and conclude on. Taking these items into account, we believe that we are on track to becoming current with our SEC filings before the end of August."
As previously disclosed, on December 17, 2012, the Audit Committee of OCZ concluded that the company should restate its previously-issued consolidated financial statements for fiscal year 2012 and the first quarter of fiscal 2013. In the course of its restatement work for these periods, the company identified two misclassification items in its previously-issued consolidated financial statements for fiscal years 2009, 2010 and 2011.
These items include:
- the recording of certain previously-expensed manufacturing and freight costs that should have been capitalized in inventory and recorded in cost of goods sold upon shipment, and
- the classification of certain customer incentive program credits as operating expenses that should have been recorded as an offset to reported net revenue.
The aggregate impact of these items on the company's previously-reported net income or loss for these periods is expected to be de minimis, although gross profit levels will be reduced from amounts previously-reported. We believe the impact to periods prior to 2012 will be isolated to these two items, though we have not yet completed our restatement work.
The impact of all adjustments made during the restatement process will be disclosed in more detail in the company's restated financial statements, which will be provided as soon as practicable. Until the restatements are released, in addition to the financial statements for the periods referenced in the paragraph above, related press releases and shareholder communications describing the results reported in these financial statements should no longer be relied upon.