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Peregrine Systems Inc. announced today it has hired Gary Greenfield as CEO, to replace Richard Nelson.
Nelson filled the CEO position on an interim basis following the May resignation of Steve Gardner. Gardner resigned on May 8 as chairman of the board and CEO when it was announced the company was under federal investigation for potential accounting practice errors. At the same time Matt Gless resigned as chief financial officer and executive vice president.
Nelson will become Peregrines chief operating officer.
The company reported last month that an independent audit had uncovered accounting irregularities to the tune of about $100 million in revenues during 2000 and 2001.
Because of questions raised by independent auditors KPMG, it became clear that Arthur Andersen, Peregrines initial auditor, would not be able to deliver on its scheduled audit because of its difficulties stemming from the Enron debacle.
Following the KPMG findings, Peregrine, of San Diego, announced in late May that the Securities and Exchange Commission had opened an investigation into the companys accounting practices.
As a result of the investigation Peregrine will restate some of its financial results.
The earnings that are in question are a result of indirect channel sales–where Peregrine derives about 40 percent of its license revenues.
While its still unclear what product lines or business areas might have been affected by the botched audit, some customers are taking the news in stride.
New CEO Greenfield was previously president and CEO of Merant Inc., an e-business software development company. Greenfield was also an adviser to private venture capital firms JMI Equity Fund and Lazard Technology Partners.
