After discovering the problem in July, the company has been working with its auditors to discover the scope of the problem and will disclose delayed third-quarter figures on August 19. It doesn’t anticipate that potential restatements will extend beyond the current year, and said it is still on target to produce revenue for the year of $11m, a 25% fall.
Tarantella made immediate changes in sales personnel after discovering the problem in its northern European operations. The problem appears to be one of revenue recognized too early, and it has upgraded its forecast for third-quarter revenue to $3.5m, from the $2.9m to $3.1m it predicted in July.
Tarantella, a server-based computing software vendor, is now pinning its hopes on its June acquisition of New Moon Systems Inc, which it believes will expand its support for Microsoft operating systems, and better position it to compete against market leader Citrix Systems Inc.
Tarantella has just $7.2m of liquid resources remaining, and in July axed a third of its 147-strong workforce and halved executive remuneration. It is valued at only $11.3m on the stock market.
Source: Computerwire
