The company said that for its fiscal year to March 2 2002, it overstated revenue by up to $85.5m, about 40% of its reported revenue of $210.8m. For the nine months to November 30 2002, revenue was overstated by up to $12.7m, or 23% of its reported $54.5m.
Riverstone said in late July that it expected to restate these seven quarters of results, but did not reveal the extent of the restatement. There will also be impacts on the two subsequent quarters, the firm added yesterday.
The networking equipment maker said it will reduce revenue for the fiscal year ended March 1 2003 by up to $13.3m, 19% of its reported $69.9m. It will also restate the quarter to May 31 2003 upwards by $700,000 on top of the reported $12.7m.
This appears to be totals of $85.5m for fiscal 2002, $13.3m for fiscal 2003, or $98.8m in total downward restatements for both periods.
The company said that the overstatements were primarily related to revenue recognized on sales to customers in which the company made investments and sales that were subject to rights of return, pricing discounts and other contingencies that were not accounted for at the time the transactions were originally recorded.
Riverstone added in a statement that revenue related to these sales either should not have been recognized or should have been recognized in a different period.
The internal accounting review is ongoing. As an additional worry, the company has been given until September 8 to file its annual report for the year to March 1 2003 with the SEC, before the Nasdaq attempts to de-list the stock.
Source: Computerwire
