West Marine received a notice from the Securities and Exchange Commission that the commission intends to recommend civil action be brought against the company.
The recommendation stems from the SEC’s investigation concerning the company’s fiscal year 2003 accounting for indirect costs included in inventory cost and from the company’s adoption of Emerging Issues Task Force Issue No. 02-16, “Accounting by a Customer (including a Reseller) for Certain Consideration Received from a Vendor.”
West Marine has disclosed these items in previously filed SEC reports, including its effects on particular periods, and corrected its financial statements with respect to each of them.
West Marine said it is evaluating the notice and intends to discuss the matter with the SEC to reach a “prompt resolution” of this matter.