Coinciding with publication of its year end results, which have seen the restatement of the third quarter figures, Select Software Tools Inc’s chief financial officer has resigned from his post. Jerry Davison’s departure from the Irvine, California company where he also held the position of chief operating officer and director is effective immediately. Select director Ed Holt said Davison decided to resign from the company on a point of principle and honor after he told Wall Street that the company had actually not generated as much revenue as it stated. The client server modeling software house was forced to restate its revenue for the third quarter after auditors spotted a problem with a $3m OEM agreement. Holt says the revenue generated from this will now be accounted for over the coming quarters of this financial year. When the third quarter figures were reported, Select claimed $7.1m in revenue, but has been forced to alter that figure to $4.1m. On news of the restatement and resignation, Select’s shares were trading down $1.875 at $4.9375 on Nasdaq, as we went to press. But Holt doesn’t seem to think the restatement will have any long term damaging effect on the company, when people are made aware of the facts. Davison has been temporarily replaced by one of the company’s outside directors, Bernard Fisher until a permanent replacement can be found. Holt said the replacement will likely be American with a familiarity with Wall Street. Commenting on the Davison’s departure from the company, Holt said: There are plenty of experienced CFOs available.
