Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Diligent annual profit slides 40% as restatement costs mount

Diligent annual profit slides 40% as restatement costs mount; shares hit four-month high

By Paul McBeth

Feb. 28 (BusinessDesk) - Diligent Board Member Services, the governance app software developer, reported a 40 percent slump in annual profit as the cost of restating its accounts overshadowed revenue gains after a series of accounting blunders.

Net profit fell to US$6.4 million, or 5 US cents per share, in calendar 2013 from US$10.7 million, or 9 US cents, a year earlier, the New York-based, NZX-listed company said in a statement. Revenue surged 66 percent to US$64.8 million from a revised down year-earlier figure. General and administrative expenses jumped 92 percent to US$18.4 million and the company faced special committee and other one-time costs of US$7.8 million. It expects more costs to come in the first quarter of 2014, it said.

On an operational basis, profit rose to US$10.3 million from US$7.6 million, Diligent said.

The shares gained earlier today after the company said it would meet today’s deadline, and rose as high as $5.05, a four-month high, recently trading at $5.01, up 6.6 percent.

The company had until today to file restated accounts after recognising revenue too early under US GAAP accounting rules to avoid having trading in its shares suspended by the stock market operator. The effect of the restatements reduced previously reported revenue by US$4.6 million in the year ended Dec. 31, 2012.

“We lacked a sufficient compliment of trained finance and accounting personnel and did not establish adequate accounting and financial reporting policies and procedures as a general matter,” the company said in an explanatory note. “In particular, there were material weaknesses in our control environment and the design, establishment, maintenance and communication of effective controls relating to revenue recognition.”

During the review, Diligent found it had to reclassify a note receivable from a related party and has recorded provisions of US$700,000 and US$500,000 for the 2013 and 2012 financial years relating to uncollected sales tax in certain US states.

The company is still reviewing internal controls and will provide an updated assessment and related remedial activities in its amended annual report, it said.

Diligent had previously said it had 2,450 client agreements as at Dec. 31, from 1,808 a year earlier, with a client retention rate of 97 percent.

It had an operational cash inflow of US$27.1 million in 2013, up from a restated US$22.8 million in 2012, leaving it with cash and equivalents of US$56 million as at Dec. 31.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

/S00218/rbnz-releases-brighter-money-designs.htm">Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Gordon Campbell: On The Australians Scoring Trade Points Against Us With The Chinese

It hasn’t been a great year for Trade Minister Tim Groser... To top it off, Australia has just signed a FTA with China that has far better provisions on dairy exports than what New Zealand currently enjoys in our own FTA with China. More>>

ALSO:

Iwi & Local Consultation: Oil And Gas Block Offer 2015 Begins

Energy and Resources Minister Simon Bridges today announced the start of the Block Offer 2015 process for awarding oil and gas exploration permits. More>>

Industrial Action: Stats NZ Throwing Public Money Away Duplicating Data

The Public Service Association (PSA) says Statistics NZ are throwing money away by collecting the same data twice for official statistics such as the Consumer Price Index... As part of the ongoing industrial action, field interviewers who are PSA members are continuing to collect data, but are not sending it through to Statistics NZ. More>>

ALSO:

Other Stats:

Space: Rosetta's 'Philae' Makes Historic First Landing On A Comet

After more than a decade traveling through space, a robotic lander built by the European Space Agency has made the first-ever soft landing of a spacecraft on a comet. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news