Hypercom (NYSE:HYC) has recently announced that it will restate its financial results for the first three quarters of 2004 to correct a lease accounting error.
According to the Associated Press "the company said that it discovered that certain leases from its British unit, Hypercom EMEA Inc., were recorded as sales income rather than operating leases." Associated Press further reports that "the adjustments will lower revenue by up to $4 million for the nine months ended Sept. 30, and will also cut operating income in the same period by 65 percent to 75 percent of the net revenue reduction."
Shortly after the announcement, shares of HYC fell 12.1 percent.
One of our member law firms is investigating whether or not Hypercom may have violated any securities laws in connection with the reported accounting error. If the investigation reveals that any law has been violated, shareholders who bought Hypercom stock between April 30, 2004 and February 3, 2005 may have done so at inflated prices.
According to the Associated Press "the company said that it discovered that certain leases from its British unit, Hypercom EMEA Inc., were recorded as sales income rather than operating leases." Associated Press further reports that "the adjustments will lower revenue by up to $4 million for the nine months ended Sept. 30, and will also cut operating income in the same period by 65 percent to 75 percent of the net revenue reduction."
Shortly after the announcement, shares of HYC fell 12.1 percent.
One of our member law firms is investigating whether or not Hypercom may have violated any securities laws in connection with the reported accounting error. If the investigation reveals that any law has been violated, shareholders who bought Hypercom stock between April 30, 2004 and February 3, 2005 may have done so at inflated prices.
