RealTime IT News

Veritas Restates Results Again

Storage software maker Veritas has filed new restatements of its prior earnings, updating its earnings restatement as a result of audits on how it booked in-kind deals for software and services with America Online.

In January, the company said it would restate results for 2000 and 2001 as a result of some swaps deals it booked with AOL, which the Securities and Exchange Commission is also looking into, according to company statements.

At the time, Veritas said that as a result of a restatement it filed for 2000 and 2001, $20 million of license and support fees with AOL wouldn't be recognized as revenue and $20 million in advertising services on AOL's network will not be recorded as an expense.

Now, in a new filing, Palo Alto, Calif.-based company said it restated its financial statements for 2000 and 2001, which resulted in removing $997,000 from its books, after it said it determined that the fair value of the goods and services purchased and sold in the AOL transactions could not be reasonably determined.

In fiscal year 2000, with the new restatement, the company reduced revenue by $19.9 million and increased its net loss and net loss per share by $8.6 million and 2 cents respectively.

As a result of the restatement, Veritas' net loss for 2000 widened to $628.4 million, and revenue to $1.2 billion. In January, Veritas had changed its net loss from $620 million to $627 million for 2000.

The company said for fiscal year 2001, the restatement reduced revenue by $4 million and decreased its net loss and net loss per share by $9 million and 2 cents per share, respectively. The latest restatement for 2001 lowered Veritas's operating expenses and improved its net loss slightly to $642 million, down from its prior restated loss of $643 million.

Veritas received subpoenas from the SEC last summer regarding the AOL transactions, which involved a $50 million software purchase and a $20 million advertising services purchase from AOL.