Qwest Communications International announced last night it would restate financial results for 1999, 2000 and 2001 after admitting it had found numerous bookkeeping errors.
So far, Qwest said it has uncovered errors that led it to book about €874 million in revenue for 2000 and 2001 in lump sums upfront instead of over time. It also understated expenses in 2001 by €113 million but overstated them by €15 million in 2000, a press release said.
The company did not say how soon the restatement would be made public.
"The company has determined that it has in some cases applied its accounting policies incorrectly," the huge Denver, Colorado-based company said. It said it would also withdraw its previously reduced financial projections for 2002.
"Certain adjustments may be required to correct the period in which the revenue was recognised with respect to some transactions, and other adjustments may be required to reverse the recognition of revenue with respect to other transactions," the statement said.
The move is intended to shore up the company's damaged reputation, after being targeted for examinations by both securities regulators and US prosecutors. But it is another blow to the hobbled telecommunications industry, hit by wave upon wave of financial scandal.
AFP