International Rectifer (NYSE:IRF) this morning announced that its audit committee has turned up “accounting irregularities at a foreign subsidiary” involving “among other things, premature revenue recognition of product sales,” and that its financial statements for the last six quarters should not be relied upon.
The chip maker says there have been “material weaknesses in the internal controls over financial reporting” at the unspecified foreign subsidiary.
International Rectifier says it will not be filing its 10-Q for the quarter ended March 31 on time. It also said that it can’t yet say when it will know the size of any required restatement.
The company also postponed a planned May 11 meeting with analysts.
In a brief research note this morning, Lehman’s Romit Shah advised against bottom-fishing the stock today given today’s news and related uncertainty on March quarter results and possible management turnover.
International Rectifier today is down $2.95 at $35.85.
IRF 1-yr chart: