Summary
This 8-K filing by Verizon Communications Inc. (VZ) on July 1, 2004, discloses a correction to its reported long distance customer base. The company identified an internal system database issue that led to an overstatement of approximately 1.5 million long distance lines as of March 31, 2004. Verizon estimates that without this overstatement, its reported number of long distance lines would have been approximately 16 million. Importantly for investors, Verizon states that this overstatement had no impact on revenue and therefore will not affect the company's financial results, balance sheets, or statements of cash flows. The company will remove these overstated lines from its count when reporting its second quarter 2004 earnings.
Key Highlights
- 1Verizon identified an overstatement of approximately 1.5 million long distance lines due to an internal system database issue.
- 2The overstatement affected the count of long distance lines as of March 31, 2004.
- 3Had the adjustment been made, Verizon would have reported approximately 16 million long distance lines as of March 31, 2004.
- 4The company explicitly states that this overstatement had no effect on revenue.
- 5There will be no financial impact on Verizon's results, balance sheets, or statements of cash flows.
- 6These overstated lines will be removed from the long distance line count in the upcoming second quarter 2004 earnings release.