Monday, June 21, 2010

INX To Restate Results

Houston-based INX, a provider of IP network communications and data center products, said late Monday that it will be restating its financials, including its 10-K for the year ended December 31, 2008, its quarterly report for its fiscal quarter ended March 31, 2009, and its quarterly reports for fiscal quarters ended June 30, 2009 and September 30, 2009. The firm said the restatements comes after a review of its "multi-element revenue arrangements." The firm said the restatement was due to errors that affected the "timing of recognition of revenues and costs of revenues" in those periods. In addition, the firm said that due to the restatement, it is evaluting whether the errors were a result of "material weakness" in its internal controls. INX said it informed its prior auditor, Grant Thornton LLP about the issues, and has discussed the issues with current auditor PricewaterhouseCoopers LLP.