News of the restatement pushed up comScore’s stock around almost 4% to $31.28 in mid-day Friday trading.
A comScore audit committee blamed “errors in judgment” for the problems on “nonmonetary transactions” in 2013, 2014 and 2015. Revenue for the company in those years has resulted in a reduction of around $50 million; and, for 2015 alone, around $29 million.
In early August, the company announced that Serge Matta, CEO, had resigned. Earlier this year, comScore completed its merger with Rentrak, media-measurement company, for $770 million.
The company says its adjusted annual revenue for the period ending December 2015 was $339.9 million, down from a previously reported $368.8 million, with an annual net loss of $10.8 million from a previously reported $2.7 million.
The company now reports a net loss in 2014 of $14.8 million and net income in 2013 of $1.6 million.
The company “does not expect in the future to enter in nonmonetary transactions that would result in a recognition of revenue,” says David Chemerow, CFO of comScore.
He added that there may be additional readjustments; comScore doesn’t have a timeline for the completion of its review. The company’s goal is to resume current filings with SEC sometime in 2017.