Case: Belden Inc.
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NEW YORK, NY – December 13, 2018 – Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) has been investigating claims on behalf of investors who purchased Belden Inc. securities (“Belden” or the “Company”) (NYSE: BDC).  

On February 1, 2018, before the market opened, Belden disclosed its fourth quarter and year ended December 31, 2017 financial results.  John S. Stroup, Belden’s President, CEO and Chairman disclosed that the Company “had expected to recognize revenue on $36 million of product that was shipped in 2017, but we were unable to do so as a result of technical U.S. GAAP revenue recognition requirements that our team identified during the year-end closing process.  We now expect these 2017 shipments to be recognized as $36 million in revenue and $22 million in EBITDA in 2018.”

On February 1, 2018, Belden shares declined from a close on January 31, 2018 of $84.59 per share, to close at $75.15 per share, a decline of $9.44 per share or approximately 11%.  An analyst at SunTrust Robinson commented on the Company’s financial results as follows: “Bad: Rev-rec concerns, broadcast & enterprise demand. The 4Q17 revrec push-out is unusual and raises concerns that other accounting issues may surface later (but we don't have great reason to adopt that view).” A Guggenheim Securities analyst commented “Broadcast revenue of $175mil (29% of total BDC mix) was -16%Y/Y and well below our $221mil estimate, albeit with $36mil of the $46mil shortfall attributed to product that was shipped in FY17 but needed to be accounted for in FY18E.”

On February 13, 2018, Belden filed its 2017 annual report with the SEC on Form 10-K in which the Company disclosed that it “did not maintain internal controls that were sufficiently designed and operating effectively to ensure that all revenue recognition criteria were satisfied prior to the recognition of revenue. Prior to issuing the fourth quarter and full year 2017 consolidated financial statements, we determined that this control deficiency led to the inappropriate recognition of revenue including certain transactions in which Grass Valley recognized revenue for products upon shipment to third party logistics providers rather than ultimate shipment to the customer-specified final destination. This control deficiency created a reasonable possibility that a material misstatement to the consolidated financial statements would not be prevented or detected on a timely basis and, therefore, we concluded that the deficiency represents a material weakness in the Company’s internal control over financial reporting as of December 31, 2017.”

On December 3, 2018, after the close of trading, Belden filed a report with the SEC on Form 8-K that disclosed that “[a]s previously disclosed in the Form 10-K for the year ended December 31, 2017 . . . the Company concluded that there was a material weakness in its internal controls over financial reporting as of December 31, 2017, related to the recognition of certain revenue at its Grass Valley business. The Securities and Exchange Commission is conducting an investigation related to the material weakness, with which the Company is fully cooperating.” 

On December 4, 2018, Belden shares declined from a close on December 3, 2018 of $55.88 per share, to close at $50.45 per share, a decline of approximately 10%.

If you are an investor in Belden and would like to discuss our investigation, please contact us by emailing This e-mail address is being protected from spambots. You need JavaScript enabled to view it or by calling 800-290-1952.  

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com.  If you have any questions about this Notice, the action, your rights, or your interests, please contact: 

Jeffrey P. Campisi
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
(800) 290-1952
(212) 687-1980
Fax: (212) 687-7714
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Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
350 Sansome Street, Suite 400 
San Francisco, California  94104
(415) 772-4700
Fax:  (415) 772-4707
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