Tech Data granted NASDAQ reprieve

World's second-largest distributor given until March to file its outstanding annual and quarterly reports

Tech Data has been granted a stay of execution from the NASDAQ Listing Qualifications Panel over its failure to file its numbers on time.

The world's second-largest distributor has been given until 27 March 2014 to file its outstanding annual and quarterly reports – a year after the original due date for its first late filing.

The NASDAQ-listed broadliner's troubles began in March when it announced it had uncovered "improprieties" relating to how its UK business recognised vendor accounting.

At the time, Tech Data estimated the errors could force it to wipe up to $33m (£20m) off its previously stated net profits and the saga led to the suspension of several mid-level UK heads.

In October, Tech Data said it had received a letter from the NASDAQ informing it that it would be delisted unless it secured a hearing with the Listing Qualifications Panel, which has now granted the distributor an extension to become compliant.

"The company is working toward becoming current with its SEC reports prior to the March date," Tech Data stated.

Before the accounting imbroglio came to light, Tech Data reported revenue of $25.4bn for its fiscal year ending 31 January 2013, making it the world's second-largest distributor behind Ingram Micro.

But although Ingram Micro tops the global standings, with revenue last year of $37.8bn, Tech Data remains much larger in Europe, reporting local sales of $15.6bn to Ingram's $10.6bn. Its UK operation, which recently retired its Computer 2000 brand name, is working towards becoming a £3bn outfit following its acquisition of SDG.