Stock Market News

US SEC says IT services firm DXC made ‘misleading’ non-GAAP disclosures

2023.03.14 18:17


© Reuters. FILE PHOTO: People exit the headquarters of the U.S. Securities and Exchange Commission (SEC) in Washington, D.C., U.S., May 12, 2021. Picture taken May 12, 2021. REUTERS/Andrew Kelly/File Photo

By Kanishka Singh

WASHINGTON (Reuters) -The U.S. Securities and Exchange Commission said on Tuesday that IT services firm DXC Technology had made misleading disclosures about its non-GAAP financial performance in multiple reporting periods from 2018 until early 2020.

DXC said it had resolved the matter and cooperated with the SEC.

“Without admitting or denying the findings in the order, DXC consented to a cease-and-desist order, to pay an $8 million penalty, and to undertake to develop and implement appropriate non-GAAP policies and disclosure controls and procedures,” the SEC said in a statement, referring to disclosures that do not adhere to Generally Accepted Accounting Principles (GAAP).

DXC materially increased its reported non-GAAP net income by negligently misclassifying tens of millions of dollars of expenses as non-GAAP adjustments, the SEC added.

“DXC Technology has resolved this legacy matter, which related to the presentation of non-GAAP M&A costs principally related to the 2017 merger that formed DXC,” the company said in an emailed statement on Tuesday.

DXC was founded in 2017 when Hewlett Packard Enterprise (NYSE:) spun off its enterprise services business.

“Our current management team has pro-actively clarified its disclosure, reduced these non-GAAP costs and cooperated fully with the SEC, and is happy to put this matter behind us,” the company added on Tuesday.

Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 97,904.23 0.49%
ethereum
Ethereum (ETH) $ 3,403.61 0.52%
tether
Tether (USDT) $ 1.00 0.11%
solana
Solana (SOL) $ 253.53 1.13%
bnb
BNB (BNB) $ 660.16 1.31%
xrp
XRP (XRP) $ 1.48 1.02%
dogecoin
Dogecoin (DOGE) $ 0.427333 2.22%
usd-coin
USDC (USDC) $ 0.99928 0.09%
cardano
Cardano (ADA) $ 1.04 2.77%
staked-ether
Lido Staked Ether (STETH) $ 3,407.05 0.50%
tron
TRON (TRX) $ 0.209126 3.14%
avalanche-2
Avalanche (AVAX) $ 43.87 3.67%
stellar
Stellar (XLM) $ 0.522022 11.29%
the-open-network
Toncoin (TON) $ 6.13 4.97%
shiba-inu
Shiba Inu (SHIB) $ 0.000026 3.69%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,999.28 1.38%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 97,698.18 0.33%
polkadot
Polkadot (DOT) $ 9.22 1.47%
chainlink
Chainlink (LINK) $ 18.12 2.08%
bitcoin-cash
Bitcoin Cash (BCH) $ 510.91 0.40%
weth
WETH (WETH) $ 3,415.04 0.13%
sui
Sui (SUI) $ 3.41 1.66%
pepe
Pepe (PEPE) $ 0.00002 3.07%
near
NEAR Protocol (NEAR) $ 6.89 3.38%
leo-token
LEO Token (LEO) $ 8.69 0.09%
litecoin
Litecoin (LTC) $ 97.12 4.61%
uniswap
Uniswap (UNI) $ 11.48 3.60%
aptos
Aptos (APT) $ 12.38 4.10%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,576.47 0.83%
internet-computer
Internet Computer (ICP) $ 11.82 1.28%
hedera-hashgraph
Hedera (HBAR) $ 0.143798 5.69%
usds
USDS (USDS) $ 0.999581 0.05%
crypto-com-chain
Cronos (CRO) $ 0.191361 3.45%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.564195 2.40%
ethereum-classic
Ethereum Classic (ETC) $ 29.07 3.79%
render-token
Render (RENDER) $ 7.96 1.11%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.49 1.56%
bittensor
Bittensor (TAO) $ 526.36 2.64%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.06%
kaspa
Kaspa (KAS) $ 0.152896 1.49%
whitebit
WhiteBIT Coin (WBT) $ 24.40 1.43%
arbitrum
Arbitrum (ARB) $ 0.859353 2.60%
bonk
Bonk (BONK) $ 0.000047 1.25%
dai
Dai (DAI) $ 0.999249 0.08%
vechain
VeChain (VET) $ 0.042749 2.43%
cosmos
Cosmos Hub (ATOM) $ 8.66 3.89%
filecoin
Filecoin (FIL) $ 5.63 4.79%
okb
OKB (OKB) $ 55.93 3.31%
blockstack
Stacks (STX) $ 2.23 4.97%
mantra-dao
MANTRA (OM) $ 3.69 3.85%