Its audit committee launched an inquiry this week after what the company described as recent discoveries relating to Embarcadero Europe’s resellers.
Embarcadero Europe accounted for approximately 20% of revenue in the first half of this year. The investigation is still at an early stage and could lead to restatement of the company’s figures for earlier periods.
Embarcadero’s shares fell 22.38% to $7.63 on the news. The company has struggled recently. It blamed a failure to close 10 large deals worth a total of more than $1 million for missing its sales targets in its second quarter when it made an $850,000 net loss on revenue up 11.3% at $13.8 million.
