Peritus Software Services Inc, Billerica, Massachusetts-based software maintenance and year 2000 company has announced that it has a new chief. Dominic Chan, chairman of the board and chief technology officer, has succeeded Allen Deary as president and chief executive officer. Deary has resigned and has also given up his seat on the company’s board. The appointment of Chan to the top post represents a return to the past, as he is one of the founders of the company and had already served as its CEO until October of 1997. The move comes as no surprise given the recent turmoil at the company, which has warned of a dismal third quarter, announced it is cutting one-third of its staff, and has had to restate revenues for the previous two quarters due to accounting errors. The mounting losses and job cuts stem mostly from difficulties in the Y2K business and flagging contracts in that area. Thus, the company will move its focus away from Y2K and back to its core software maintenance outsourcing business. The accounting problems were blamed on incorrect interpretation of sometimes confusing year-old accounting standards with regard to software revenue recognition. Peritus has also announced that it is delaying the release of its financial results for the third quarter which will show a substantial loss even before restructuring charges – pending final review and confirmation. Given the current circumstances, it would seem a wise move. The company’s shares are currently languishing at $0.906, in a different universe from the 52-week high of $23.75, and it could face de-lisiting procedures from Nasdaq.
