Why Velo3D Stock Was Tumbling This Week
On Thursday, Velo3D (NYSE: VLD) investors sold out of the stock in droves. As a result, according to data compiled by S&P Global Market Intelligence, shares of the 3D printing company were down more than 21% in price week to date as of early Friday morning. A flaw in Velo3D's financial reporting was the root of the problem.
After market close Wednesday, Velo3D disclosed in a regulatory document that roughly $200,000 it reported as revenue in its third quarter (plus the first nine months of this year) should have been deferred. It added that it will have to accordingly revise several key line items in the quarterly figures, namely total revenue, gross profit, gross margin, and net loss (both overall and on a per-share basis).
Velo3D said it does not anticipate having to fix other items in its financial statements.
Source Fool.com
