NAI to Restate Three Years Earnings
Move follows investigations by the Securities and Exchange Commission and the Department of Justice.Security vendor Network Associates Inc. plans to restate three years of earnings after investigations by the Securities and Exchange Commission and the Department of Justice turned up some information that casts doubt on the validity of the previously stated numbers. Company executives said Wednesday that they will revise the earnings statements for 1998, 1999 and 2000. "The companys decision is influenced by discussions with the government, but we believe this is the appropriate way to move at this time," said Ken Roberts, chief counsel at Network Associates, based in Santa Clara, Calif.
Officials declined to provide any specifics on what prompted the decision to restate earnings, except to say that its related to the companys conversion in late 2000 to the sell-through method from the sell-in method of accounting for sales to distributors. NAI will also delay the filing of its next quarterly earnings report, which was due March 31, in order to make adjustments related to the restatement.
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