Shares of Jamba, Inc.JMBA declined 3.26% in the after market trading session following the company's request for 15 more days to file its annual report with the Securities and Exchange Commission (SEC), as the company's internal control over financial reporting has not been completed yet. The company also filed a Form 12b-25 with the SEC pertaining to this extension.
The company stated that it expects results to be same as the unaudited fourth-quarter and full-year 2014 financials reported on Mar 12. The company's fourth-quarter loss of 27 cents was narrower than the Zacks Consensus Estimate of a loss of 33 cents. However, revenues of $43.9 million were almost in line with the Zacks Consensus Estimate.
Jamba announced that it will report a material weakness in its financial results, due to an insufficient complement of finance and accounting resources within the organization. This was partly due to employee turnover because of certain expense reduction initiatives undertaken by the company.
In August, last year, Jamba announced that it was outsourcing a number of administrative tasks, including finance and accounting support, to Capgemini - a premier provider of consulting, technology, and outsourcing services. This was part of Jamba's strategy to lower general and administrative costs by 10% to 20% in 2015 and was the result of the activist investors' insistence to cut costs and exit the New York City market in a bid to shift to an asset-light model. Owing to the aforementioned reasons, the annual report has not yet been filed.
Jamba currently carries a Zacks Rank #4 (Sell). Better-ranked stocks in the restaurant sector include Dave & Buster's Entertainment, Inc. PLAY , Cracker Barrel Old Country Store, Inc. CBRL and BJ's Restaurants, Inc. BJRI . All these stocks sport a Zacks Rank #1 (Strong Buy).