Struggling business intelligence software developer Sagent Technology Inc. may need to restate nearly $5 million of revenues reported this year, pending the results of an internal investigation of the validity of some sales orders, the company reported Thursday.
The orders in question were booked to government customers by a single salesperson in the Mountain View, Calif., companys Washington, D.C., sales office.
The company said that it had already discovered information indicating that a $1.1 million sales order recognized as revenue in the third quarter may not be valid. As a result, it is investigating $4.9 million worth of sales orders booked by the same individual this year for which payment has not yet been received.
Any loss of revenues would be a significant blow to Sagent, which has already reported a $26.1 million net loss for the first nine months of this year. The sales orders in question make up nearly a quarter of the companys $21.7 million in license revenues recorded so far this year.
Sagent said that it is reviewing actions necessary, including additional expense reductions, to ensure that it continues toward its previously stated goals for profitability and liquidity.
The company said it has no indications that sales orders recorded by other sales personnel could also be invalid.