Enterasys faces SEC probe

"Apparently unrelated" results delay

By John Leyden • Get more from this author

Posted in Business, 4th February 2002 11:04 GMT

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The Securities and Exchange Commission (SEC) is examining the finances of Enterasys Networks.

The subject of the investigation of the enterprise networking firm is unclear. In a statement published Friday, Enterasys said it "and certain affiliated companies" are under SEC investigation, adding only that it intends to co-operate fully.

In the statement, Enterasys said it was delaying its fourth quarter results because of an "apparently unrelated" matter.

The delay has been called in order to allow Enterasys and its auditors (KPMG) to reviews the terms of a $4 million sales contract recorded by its Asia Pacific operations.

Enterasys was created after networking vendor Cabletron decided to split itself into four units back in 2000. The other units - Riverstone Networks, Enterasys Networks, Global Network Technology Services and Aprisma Management Technologies - do business in the service provider, e-business, services and infrastructure management software markets.

The companies began as subsidiaries of Cabletron, with the plan to eventually spin them off as separate public companies. ®