One of the biggest providers of tablets and personal computer accessories, Logitech announced that they will be implementing minor amendments after the Logitech accounting probe incident. Some of the accounting errors noted was booking inventories that fired an investigation of the company for several weeks.
One of their factories in Lausanne, Switzerland expressed that the shares of their investors provided delayed results in May, which prompted scrutiny under the U.S. Securities and Exchange commission (SEC). To address this issue, Logitech has announced last Thursday that they will remove some of their income from the last quarter of books in 2011 then place it on the first quarter of 2012.
This amendment, according to Logitech, will not affect the fiscal years of 2013 and 2014. As a response to Logitech accounting probe incident, the company ensures that this move will not affect their cash statements in any given fiscal year.
The Logitech shares increased as evidenced in news reports at 5:54 am EDT last friday. The shares increased to more than 1.6 percent therefore opting a 0.2 percent fall in the European sector investments.
Andreas Mueller, Zuercher Kantonalbank analyst, expects that the scrutinized accounting issue will no longer become a problem, as there will only be few consequences on reported earnings specifically not because of financial penalty. Mueller further implies that the stock is overweight.
Last Wednesday, the German company Puma known for making sportswear, declared that they had understated their 2012 pretax profit by 10 million euros ($13 million), as there were accounting errors noted.
For the past few years, the profit margin of Logitech has been affected by an increase of tablet devices. To make amends on their profit, the company took chance to read their records and see which of their products are affected by these devices. Following the Logitech accounting probe, it is expected that the minor changes will be implemented soon.
