Sybase Inc has unexpectedly postponed its fourth quarter and fiscal 1997 results due to improper revenue recognition relating to a number of transactions by its Japanese subsidiary. Discovered during its audit of final figures for the fourth quarter and full year, Sybase warns the likely impact on its bottom line of the illegal actions is to be quite severe – in the $60-$65m range – and further warns it will require the reversal of revenues in the fourth quarter, the restatement of revenues for the first three quarters of 1997, and finally, it is now set to report a loss for the fourth quarter substantially in excess of the preliminarily estimated results announced on January 2, 1998 (CI No 3,318). At that time, the company expected to be able to report pre-tax profit and revenue of between $245m and $250m. All of the individuals in its Tokyo-based subsidiary responsible have either resigned or been terminated, states the company. We find it highly disturbing that the actions of a few individuals have impacted the achievements and integrity of Sybase employees throughout the world, notes Mitch Kertzman, the recovering Emeryville, California-based database and tool company’s chairman and CEO. This incident is completely contrary to Sybase’s corporate culture, and behavior of this sort has not and will not be tolerated by the company, he said. We have taken immediate, aggressive action to resolve this situation, and are committed to the highest standards of ethics, business and accounting conduct, he added in a prepared statement.
