An independent review costing $10m of the accounts has just been completed and revealed that inaccurate or misleading information was provided to auditors in connection with the accounting treatment of stock options of a departing employee of a foreign subsidiary, and revenue recognition with respect to software contracts in Korea. The review also raised concerns over the timing of revenue recognition and other failures to comply with generally accepted accounting principles. This led to a review of the accounts for the past three years.
What figures the Santa Ana, California-based company is able to reveal show it to be in good health and its shares have been buoyant over the past few months even though it has been unable to reveal figures for the last three quarters of 2004. It ended the year with cash and investments of $76.6m, compared with $48.5m a year earlier. MSC.Software said its sales pipeline grew to $333m.
Earlier this month the company said William Weyand was to become chairman and CEO after the retirement of Frank Perna.
