By Dean Seal
Symbotic reduced its quarterly guidance and said it will need more time to file its annual report after identifying an error in its system revenue recognition.
The robotics warehouse automation company said Wednesday that it is assessing the financial impacts of correcting the error as well as the impacts of that error on internal controls over financial reporting.
The company said that while preparing its full-year financial statements, it identified occurrences during the fiscal year ended Sept. 28 in which goods and services tied to specific milestone achievements were expensed before those milestones were achieved.
As a result, the recognition of both revenue and cost of revenue was accelerated, Symbotic said.
The company subsequently found errors in its revenue recognition related to cost overruns that aren't billable on certain deployments, impacting the fiscal second, third and fourth quarters.
Symbotic said correcting the errors may cut system revenue, system gross profit and adjusted Ebitda for the full year by $30 million to $40 million.
The issues have prompted Symbotic to lower its first-quarter revenue outlook to between $480 million and $500 million. It previously guided for $495 million to $515 million.
Shares fell 22% to $29.16 in premarket trading.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
November 27, 2024 07:38 ET (12:38 GMT)
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