Beleagured enterprise management software vendor Peregrine Systems has again restated its financial results, this time chopping its previously stated 1999 to 2001 revenue by $509 million.
That’s more than double the amount it estimated last year and is the second time that the company has had to restate earlier results since its Chapter 11 bankruptcy filing in September.
The Chapter 11 bankruptcy reorganisation filing came about after financial irregularities were discovered in its bookkeeping methods. The company has since filed a lawsuit against its former accounting firm, Arthur Andersen LLP. Soon after the bankruptcy filing, the company announced an estimated restatement of some $250 million in revenue.
The company has now restated its results for the three fiscal years ending March 31, 2002. Under the restatement, revenue of $1.34 billion was reduced by $509 million for the period from April 1, 1999 to Dec. 31, 2001. About $259 million of that reduction was "reversed for nonsubstantiated transactions, while $70 million was reversed and used to reduce acquisition or investment costs."
"We conducted a thorough investigation, identified issues and have taken corrective measures to prevent or detect future occurrences," said Gary Greenfield, Peregrine's CEO. "The restatement is behind us, and we are now creating a foundation to ensure that the company's financial policies and practices meet the highest standards in the future."