Boston, MA 09/29/2014 (wallstreetpr) – According to reports, L-3 Communications Holdings, Inc. (NYSE:LLL) has revealed a lot of accounting problems. It said that it would amend its financial results for the first quarter of this year and 2013 annual results.
Insights of the matter:
LLL is a well-known defense contractor of the country. A program called ‘flight-simulator program’ began in 2004 and earned a lot of attention for the company. L-3 Communications Holdings, Inc. (NYSE:LLL) announced financial results of this program recently and committed a lot of accounting mistakes. A few days back it announced that it would correct all the mistakes that were there in the financial results of flight-simulator program. There were a few corrections required in aerospace division’s financial results as well. After the corrections, additional charges of $73 million for previous quarters, $12 million for the first and $51 million for the second quarter will be levied on LLL. According to LLL, adjustments of flight simulators were not related to accounting problems in the aerospace division of the company.
Two months back L-3 Communications Holdings, Inc. (NYSE:LLL) announced that quite a few former senior management employees of the company committed a lot of mistakes regarding costs and revenue of the company’s U.S. Army contract. It caused an additional charge of $84 million and a cut to the company’s forecast for the entire year. It became very popular when LLL fired three of its employees and forced one to resign from his position.
It announced on Friday that its review on previously committed mistakes was almost completed. On the basis of results that it got, it decreased the yearly forecast by additional $34 million saying that it figured out total $164 million worth of adjustments related to review. The company also said that it was expanding compliance testing and retrained staff on various financial matters for efficient proceedings in the future.
