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Diligent pushes out timeline to restate accounts, expects to avoid trading suspension

Thursday 17th October 2013 2 Comments

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Diligent Board Member Services, the governance software developer censured for a raft of administrative blunders, says it will take longer to restate its books than previously thought, though it doubts the stock exchange will suspend trading in its shares.

The New York-based, New Zealand-listed firm expects to spend up to another 45 days restating its sales for the past three financial years, and says it will announce its first-half results on or before Dec. 12. The shares have plunged 46 percent from a peak in June as the extent of the errors became more apparent, though Diligent said NZX indicated it won't impose a suspension because of the delay.

"Completing the restatement quickly is one of the highest priorities in the company and the board and management team are focused on the completion of both the restatement and reaudit," chief executive Alex Sodi said in a statement.

The stock gained 5 percent to $4.39 today, continuing recent gains as investors regain confidence in its profitable operations and strong customer retention rate.

In a truncated update earlier this month, Diligent said it increased its cash balance by US$8.4 million to US$47.4 million in the three months ended Sept. 30, a period when it signed 122 net new client agreements compared to 168 a year earlier.

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Comments from our readers

On 18 October 2013 at 10:42 am Bill Sutton said:
My response to the incredibly poor financial governance revealed by Dilgent, and their amateurish reports to shareholders, was to sell all my Diligent shares and reinvest the proceeds in Xero and Infratil. I haven't regreted it. They'll need to be damned impressive, when they finally do report their re-jigged records, to restore any serious investor confidence
On 18 October 2013 at 12:12 pm Tom said:
Never could understand why a New York-based company specifically chose to list on NZX; but with each passing day, excuse, extension, non-suspension etc, it becomes clearer.
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