NEC Corp. Has Had Enough, Will Take the Zero
Here’s a new one: NEC Corp. announced yesterday that it is “unable” to complete a U.S. GAAP-required analysis relating to software, maintenance and service revenues that its auditors need to complete the audit of NEC’s consolidated financial statements for the fiscal year ended
“Unable?” What exactly does that mean? As boiled down in this article on CFO.com, the company “simply cannot figure out U.S. GAAP revenue-recognition rules, and will stop trying.” NEC acknowledges in its press release that this may mean its ADRs will be suspended or delisted on Nasdaq.
As Eddie Murphy put it in “Delirious,” NEC has effectively decided to “take the zero.”
