February 5, 2010, 12:00 AM

Overstock.com once again restates its earnings

Online retailer Overstock.com Inc. says it`s recalculating more financial statements because of accounting errors that already had the company under review by the U.S. Securities and Exchange Commission.

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Online retailer Overstock.com Inc. says it`s recalculating more financial statements because of accounting errors that already had the company under review by the U.S. Securities and Exchange Commission.

Overstock, No. 29 in the Internet Retailer Top 500 Guide (a PDF version of the company’s financial and operating profile can be ordered by clicking on its name), is shifting about $1.7 million of income from its 2009 fiscal year to its 2008 fiscal year, according to an SEC report filed yesterday. Another $900,000 was eliminated from its 2009 profit and $350,000 from its 2008 profit due to improper accounting of stock options.

The online discount retailer attributed some of the problems to incorrect invoices paid to one of its drop-ship partners and an uncollected vendor bill that went “undiscovered for a period of time.”

Overstock says KPMG, its new auditor, is still reviewing Overstock’s corrections, so more changes may be coming.

Overstock announced in September the SEC was investigating the company’s previously announced restatements of its financial statements in its 2006 and 2008 fiscal years. In a press release at the time CEO Patrick Byrne said, "All of the matters that are the subject of the subpoena have been thoroughly disclosed and we are disappointed, given the extensive public disclosures Overstock has previously made, that the SEC, given all of the challenges it faces, has apparently chosen to expend time and resources on another investigation of Overstock."

This time Overstock took a far more subdued approach. It did not issue a press release or any statements from Byrne. Overstock could not be reached for comment.

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