plunged 15% Wednesday after the maker of short-range wireless networks said it would be late filing its quarterly report with regulators.
The Alameda, Calif., wireless tech company said its second-quarter financial review process flagged a $1.9 million equipment sale that shouldn't have been recorded as revenue. The company said it didn't include the deal in second-quarter numbers, which UTStarcom
posted two weeks ago.
The company said it notified its audit committee and began an internal inquiry into the transaction. UTStarcom on Tuesday filed for a five-day extension on its 10-Q with the
Securities and Exchange Commission
to allow the review to be completed before the company files those results.
"UTStarcom believes that a prudent approach to the filing of our 10-Q is the appropriate course of action as it relates to this review," said finance chief Mike Sophie.
UTStarcom's comments come at a tumultuous time for tech stocks. The market opened sharply lower Wednesday, driven by cautious comments from networking juggernaut
, as investors continue to puzzle over the tech sector's prospects.
Meanwhile, UTStarcom shares have been in free fall ever since the company rolled out its mid-June plan to acquire the handset unit of Long Island wireless shop
. Since rising into the low-$30 range ahead of that deal, UTStarcom has seen its stock lose more than half its value, helped along by last week's 28% plunge on a weak third-quarter outlook.
On Wednesday, UTStarcom dropped $2.58 to $15.37.