NAI to Restate Three Years of Financials

By Dennis Fisher  |  Posted 2002-05-17 Print this article Print

The restatements will result in a narrower profit for Network Associates for 1998 and larger losses for 1999 and 2000.

Network Associates Inc. on Friday said that it will restate three years of financials, which will result in a narrower profit for 1998 and larger losses for 1999 and 2000. The 1998 net income will drop to $32.4 million from $36.4 million, the 1999 net loss will increase by $3 million to $159.9 million and the 2000 net loss will swell by $21.2 million to $123.9 million.
NAI will also restate its balance sheets for the fourth quarter of 2001 and the first quarter of this year in order to accommodate the changes. But company executives stressed that there were no inaccuracies found in the accounting for the five most recent quarters.
The restatement is the result of an internal investigation into the Santa Clara, Calif., companys accounting practices. The company discovered some accounting inconsistencies three weeks ago while preparing a tax filing, and the board of directors ordered its audit committee to perform a full investigation. The inaccuracies that the committee found included the misapplication of funds from its tax account to its general and administrative liability accounts. The Securities and Exchange Commission is also investigating NAIs accounting practices. The company said it plans to file its restated results with the SEC by June.

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