SEC slaps DXC Technology with $8M fine for overstating adj. net income for 3 quarters
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- The Securities and Exchange Commission on Tuesday fined Ashburn, Virginia-based DXC Technology (NYSE:DXC) $8 million for certain misleading information about its financial metrics from 2018 to early 2020.
- "DXC materially increased its reported non-GAAP net income by negligently misclassifying tens of millions of dollars of expenses as non-GAAP adjustments for so-called transaction, separation, and integration-related costs and improperly excluding them from its non-GAAP earnings," the SEC said in a blogpost statement.
- The SEC order on DXC claimed that by misclassifying its costs, the IT company "overstated" its non-GAAP net income for 3 quarters, while also failing to evaluate its own disclosures on what constitutes as a TSI expense.
- The company has agreed to a cease-and-desist order to pay the fine, without admitting or denying SEC's claims.
- Press Release.
- Shares -2.4% at $24 after hours.