View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
December 19, 2004

BearingPoint admits accounting concerns

IT services vendor BearingPoint Inc will take a restructuring charge of up to $67 million in the first half of 2005, and has admitted that it has major concerns over holes in its accounting procedures.

By CBR Staff Writer

The McLean, Virginia-based company is taking the charge to cover a reduction in office space, according to a filing to the Securities and Exchange Commission (SEC). BearingPoint also said it might be unable to meet financial accounting standards under the Sarbanes-Oxley Act that require companies to certify that they have adequate accounting controls in place to prevent fraud.

To add to its woes, BearingPoint said it received a subpoena from the SEC and a request for documents from the US attorney’s office, which is pursuing a case against executives of asset management software vendor Peregrine Systems Inc.

Peregrine overstated its revenue by $509 million from 1999 to 2001, according to the SEC. BearingPoint, formerly known as KPMG Consulting, was a reseller of Peregrine’s software during that time. It is alleged that Peregrine boosted sales by recording revenue with reseller partners, without actually collecting the bills.

BearingPoint is still looking to appoint a new CFO following the departure of Bob Falcone in November. The company is aiming to steady its financial position by issuing a new $350 million convertible debt offering to replace an existing credit facility and repay existing debt. It is also considering the sale of various operations.

Content from our partners
Scan and deliver
GenAI cybersecurity: "A super-human analyst, with a brain the size of a planet."
Cloud, AI, and cyber security – highlights from DTX Manchester

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.