The asset management software company, which is in Chapter 11, detailed a series of accounting irregularities during the period ranging from the timing of transactions to reciprocal transactions to underestimating the total cost of acquisitions.
The restatements covered the period from April 1, 1999 and December 31, 2001. The company’s total revenue for the period was originally reported as $1.34bn. Following Friday’s restatement, that figure was cut by $509m.
Peregrine said it reversed $259m for non-substantiated transactions. Another $70m was used to reduce acquisition or acquisition costs. The remaining $180m will be reported in future periods, assuming it meets the appropriate criteria.
San Diego, California-based Peregrine said that the loss from continuing operations in its fiscal year ending March 31, 2002, was $1.5bn. In 2001, the loss from continuing operations was $374.8m and in 2000 was $217.4m. The company said a substantial proportion of these losses resulted from one-time acquisition costs, non-cash impairment charges for long-term assets related to acquisitions and amortization of stock-based compensation.
CEO Gary Greenfield said the company’s license revenues grew substantially during the period, which gave it confidence in its ongoing business. Greenfield was appointed last June, shortly after the revenue recognition irregularities were first uncovered.
Following the uncovering of the revenue irregularities, Peregrine fell into Chapter 11. Earlier last week the company’s creditors agree to a Chapter 11 reorganization plan. The deal was subject to court approval, and the filing of the re-audited results by the end of Friday.
Source: Computerwire
