Peregrine Exits Bankruptcy

Peregrine Systems Inc. is back.

The maker of asset and service management software on Thursday emerged from Chapter 11 bankruptcy protection saying it had completed all the requirements of the bankruptcy court.

Peregrine came under fire last year when accounting irregularities came to light and the San Diego company had to restate three years of earnings. CEO Steve Gardner and CFO Matt Gless resigned their posts. Peregrine last month settled some of the Securities and Exchange Commissions charges against the company. It signed a consent degree settling an SEC suit that alleged “massive financial fraud” by former officers of the company. The agency said the company improperly recorded hundreds of millions of dollars in revenue. Despite the settlement, Peregrine still faces possible civil penalties.

Gary Greenfield took over as CEO in June 2002, after the accounting problems came to light, and took the company into bankruptcy. As part of a restructuring Peregrine sold its Remedy help desk software unit last year to BMC Software Inc.

Greenfield said in an interview with eWEEK that he was glad to be out from under the cloud of the bankruptcy and does expect the news to lift sales eventually.

“Our customers have been extremely loyal,” he said. “We have an enterprise software purchase so this isnt something a company acquire or abandons on the spur of the moment.”

Greenfield said company governance has evolved. It added checks and balances across the accounting for sales and finance. It added a compliance officer that reports directly to the board of directors.

Peregrine is looking to the future with 28 percent of its staff focused on research and development, Greenfield said. He also said that acquisition had to be a part of Peregrines future plans, but he was not yet on the hunt for companies or technologies to buy.

Greenfield was cautious in his optimism.

“Everything is a continuum,” he said. “Its an important milestone but its not the beginning of the road or the end of the road.

“Now we can focus on profitability without looking behind us.”