6 Aug 2013

Another snaffu reported by Diligent

12:22 pm on 6 August 2013

Software company Diligent has admitted another accounting error and says it misreported its financial accounts for the last three years and those it produced for the three months ended March this year.

Because it is working on correcting the errors, which essentially boil down to it recognising sales too soon, Diligent says it is also unable to report its June quarter results on time.

In the meantime, the company is working on producing corrected financial statements for the periods affected.

A sign that the company is losing momentum at the operating level is that it signed a net 173 new clients in the June quarter, down from 216 in the June quarter last year.

In the March quarter, it signed a net 201 new clients, down from 205 in the March quarter last year.

Earlier this year, Diligent revealed that it had not complied with rules requiring its finances to be audited by a registered firm.

It also revealed that lax in-house controls had contributed to some of its top executives receiving too many stock options.

Diligent shares fell as much as 45 cents, or 7.4%, to $5.60 on Tuesday morning before recovering some ground.