On Wednesday, Symbotic Inc (NASDAQ:SYM) has announced a delay in filing its Annual Report on Form 10-K for the fiscal year ending September 28, 2024.
The company cited the need for additional time to evaluate the financial impact of revenue recognition errors and address related internal control deficiencies. The stock is down 31% in pre-market trading.
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These issues were initially identified in Symbotic’s recent earnings release. The company’s review revealed revenue recognition errors related to cost overruns on specific implementations. These inaccuracies impacted system revenues recognized in the second, third and fourth quarters of fiscal year 2024.
The company estimates that the total impact of correcting these errors will be to decrease system revenues, system gross profit, pre-income tax income (loss) and adjusted EBITDA by $30 million to $40 million for fiscal year 2024, compared to the financial results released in November. 18, 2024.
Symbotic now expects first quarter fiscal 2025 revenue of $480 million – $500 million (previously $495 million – $515 million) versus the estimate of $503.6 million, in addition to adjusted EBITDA of $12 million – $16 million (previously $27 million – $31 million). The company has committed to restating its previous financial disclosures to reflect these adjustments.
In response to these material weaknesses, Symbotic is implementing strategies to improve internal control over financial reporting. The company expects to file its Form 10-K and amended Quarterly Reports on Form 10-Q for fiscal year 2024 within the 15-day extension period allowed for late filings.
Symbotic stocks are down 25% this year. Symbotic will also amend its current report on Form 8-K with respect to this matter to reflect that the financial results for the fourth quarter and fiscal year 2024 issued on November 18 should no longer be relied upon.
During CNBC’s “Mad Money Lightning Round,” Jim Cramer highlighted Symbotic as a substantial investment opportunity, noting its profitability and position in a fast-growing sector.
Price promotion: SYM shares are down 31% to $25.79 premarket at last check Wednesday.
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