WANdisco flags going concern issues on discovering potential fraud

(Reuters) - WANdisco, a UK-based data software firm, said Thursday that an internal investigation showed "significant, sophisticated and potentially fraudulent irregularities" by an employee, prompting significant going concern issues.

The company said the investigation conducted by its chief executive and finance chief showed irregularities in its orders and bookings, as represented by a senior sales employee.

WANdisco said the irregularities will significantly hit its cash position and now projects fiscal 2022 revenue to be as low as $9 million, compared with the $24 million it had reported.

"The company has no confidence in its announced FY22 bookings expectations," it said. It had reported full-year bookings of $127 million in January.

The AIM index, where WANdisco is listed, has suspended trading in the company's shares from Thursday morning, pending an announcement.

(This story has been refiled to remove an extraneous word in paragraph 1)

(Reporting by Prerna Bedi in Bengaluru; Editing by Dhanya Ann Thoppil and Savio D'Souza)