Telecommunications-equipment maker Oki Electric Industry Co. widened its half-year net loss forecast by 50 percent after a Spanish unit overstated accounts.
The net loss will probably total ¥3 billion in the six months ending Sept. 30, compared with its earlier loss estimate of ¥2 billion, Oki said Friday. The company also lowered its sales estimate for printers in Spain, it said.
Oki, with customers including International Business Machines Corp., has said it intends to improve management and internal controls to prevent future overstatements. Oki was put on watch for a possible delisting by the Tokyo Stock Exchange last month after saying the unit in Spain overstated accounts receivables, prompting the biggest one-day share decline in at least 37 years.
The accumulated effect on Oki’s earnings over at least six years from the accounting irregularities totaled ¥30.8 billion.
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