NAI re-cooks the books
In the shadow of an SEC probe
Network Associates (NAI) is to postpone filing results for this year and will restate figures for three previous years as a result of government enquiries into its finances.
The company, best known for its flagship McAfee AV software, said today it will restate financial results for 1998, 1999 and 2000 to iron out revenue accounting irregularies. The move comes in the midst of a previously announced, ongoing Securities and Exchange Commission and Department of Justice investigation into NAI's books.
In a statement NAI said: "As a result of information obtained in connection with those investigations, the company has determined to restate the financial statements for those periods. The restatement will reflect revenue on sales to distributors on a sell-through basis (which is how Network Associates has reported sales to distributors since the beginning of 2001)."
"The restatement may also include other matters addressed by the government investigations," it added.
NAI added that it will postpone the filing of its 2002 Form 10-K, due on March 31, 2003, in order to restate its prior financial results.
Network Associates shares fell from close at $15.38 yesterday to $14.50 in early trading today on the news. ®