RESTON, Va.-Former Nextel Communications Inc. subsidiary NII Holdings Inc. said it plans to restate financial reports for full year 2003 and the first nine months of 2004 after its audit committee found possible accounting errors.
The errors include $20 million in income tax computational errors in a restatement footnote for 2003; a $1.2 million decrease in revenue and pre-tax income for the three months ended Sept. 30, 2004 related to revenue recognized for suspended customers in Mexico; the timing of insurance claims recorded for damaged equipment in Mexico that resulted in an $800,000 write-off of equipment in the second quarter of 2004 and a $1.8 million increase in operating expenses for the nine months ended Sept. 30, 2004; and an understatement of depreciation expense for handsets under operating leases in Argentina that resulted in a $500,000 increase in depreciation expenses for the final quarter of 2003; and a $1.6 million increase for the first three quarters of last year.
NII said the errors were non-cash in nature and would have no material impact on its operating metrics, operating revenues or operating income before depreciation and amortization.
The filings are expected to be amended by March 31 and will require an extension for the filing of full-year 2004 results.
NII’s stock was trading up slightly early Monday at $55.78 per share.
