InPhonic shares slip on news of mistaken commissions

Shares of InPhonic Inc. slid after the company said it will restate results for the second and third quarters of 2006 due to accounting errors.
The company, in a filing with the Securities and Exchange Commission, said it had mistakenly recorded “certain disputed carrier commissions” as revenue, but should have waited until the commissions were actually paid. InPhonic, which sells mobile phones online under the Wirefly brand, also identified a deficiency in how it records certain fees due from consumers when contracts are cancelled.
The restatements will add $5 million to $7 million to InPhonic’s 2006 net loss, which was initially reported as $3.5 million. Shares fell 9 percent, or 94 cents, to $9.42 following the news.