Array Overstates Revenue by $7.3 Million, Net Income by $5.8 Million
Solar firm restates nine months of financials in belated annual report.
April 7, 2022
Two weeks ago we warned investors Array Technologies, a manufacturer of solar tracking systems, was unable to file its annual report on time due to accounting issues. Though the company acknowledged the possibility it may have improperly recognized revenue, shares spiked 30.6%. In its belated 10-K, Array restated financials for the first 9-months of 2021, revealing it had overstated revenue by $7.3 million and net income by $5.8 million.
The company blamed myriad control deficiencies; it lost track of inventory, improperly recognized revenue, and was unable to verify the existence of receivables. The weaknesses impacted the balance sheet and income statement through September 30, 2021. The adjustments— which management recently said it wasn’t sure would be necessary— indicate Array overstated:
—Sales by 1.15%
—Operating income by 105%
—Net income by 20.3%
Approximately seven hours after filing the belated report, Array filed an amended report after discovering it had mistakenly backdated the Auditor report by a day. The filings occurred on the same day Array announced a new CEO.
Related: FLEX, FTCI, Artech Solar (SHA: 688408), ROCK
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