NEW YORK (TheStreet) -- Shares of Thailand-based Fabrinet (FN) are down by -18.08% to $14.54 in mid-afternoon trading on Monday, after the company announced its fourth quarter and fiscal 2014 earnings release would be delayed pending an internal investigation into its accounting practices.
The company, which provides advanced optical packaging and precision optical, electro-mechanical, and electronic manufacturing services to equipment manufacturers, said that during the fourth quarter 2014 it discovered accounting issues, and has launched an investigation to determine if the issues violate the company's accounting policies.
The SEC was also made aware of the accounting problem, the company said.
Fabrinet was originally supposed to release its earnings results on today, but now says it will do so "as soon as practicable."
Separately, TheStreet Ratings team rates FABRINET as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate FABRINET (FN) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow."