Feeds

Veritas to restate results after probe

Second time is the charm

  • alert
  • submit to reddit

Top three mobile application threats

Veritas will restate two years of financial statements after an investigation uncovered a variety of accounting practices not in line with generally accepted methods.

The software maker plans to restate statements for fiscal 2001 and 2002 and will delay filing of its annual report for 2003. The new statements should have Veritas lower 2001 revenue by as much as $5m and increase 2002 revenue by as much as $10m. Revenue for 2003 could also be lowered as much as $15m. Veritas ended an internal investigation into its accounting practices on 12 March.

"These practices included the incorrect deferral of professional services revenue and the unsubstantiated accrual of certain expenses, which had a positive impact in some periods and a negative impact in others," Veritas said. "In addition, accounts receivables and deferred revenue were overstated by approximately $7m at 30 June, 2002. The expected adjustments for 2003 are primarily a consequence of correcting errors from the prior periods."

In 2001 and 2002, Veritas reported close to $1.5bn in revenue.

This is not the first time Veritas has restated its results. Last year, Vertias erased $20m in revenue from its 2000 and 2001 statements. The change came after the US Securities and Exchange Commission subpoenaed documents relating to deals between Veritas and AOL.

In addition, Veritas fired its CFO Kenneth Lonchar in 2002 after he admitted to lying about academic credentials. Veritas' CEO Gary Bloom said the company has confidence in current CFO Ed Gillis.

"While today's announcement is unfortunate, it does not change the fundamental strength of our business, as we drive the company to a target of $2bn in revenue in 2004," Bloom said.

Veritas warned that the NASDAQ could delist its shares as a result of delays in filing financial forms for 2003.

"The Company expects to remedy its filing deficiency before NASDAQ delists its securities, but there can be no assurance that NASDAQ will grant a request for continued listing," Veritas said.

An explanation of the accounting changes is available here. ®

Related story

Fired! Veritas CFO lies on CV

High performance access to file storage

More from The Register

next story
This time it's 'Personal': new Office 365 sub covers just two devices
Redmond also brings Office into Google's back yard
Kingston DataTraveler MicroDuo: Turn your phone into a 72GB beast
USB-usiness in the front, micro-USB party in the back
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Inside the Hekaton: SQL Server 2014's database engine deconstructed
Nadella's database sqares the circle of cheap memory vs speed
BOFH: Oh DO tell us what you think. *CLICK*
$%%&amp Oh dear, we've been cut *CLICK* Well hello *CLICK* You're breaking up...
Just what could be inside Dropbox's new 'Home For Life'?
Biz apps, messaging, photos, email, more storage – sorry, did you think there would be cake?
IT bods: How long does it take YOU to train up on new tech?
I'll leave my arrays to do the hard work, if you don't mind
Amazon reveals its Google-killing 'R3' server instances
A mega-memory instance that never forgets
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.