RealTime IT News

SEC Requests Riverstone Accounting Info

The Securities and Exchange Commission (SEC) has asked Riverstone Networks for information about its accounting practices.

The request could lead to "a formal investigation on the same topic," Riverstone said in a short statement this morning.

A spokesman for the Santa Clara, Calif., network equipment maker would not provide additional details.

News of the SEC inquiry comes four days after Riverstone announced a search for a new CEO. Romulus Pereira, who has held the job since the company's inception was named chairman of the board. He will serve as acting CEO until a replacement is found.

In recent quarters, Riverstone has expanded its focus beyond telecom carriers to include governments, education and research institutions and finance and health care organizations.

The company has announced recent product deployments at the Pentagon, University of Arizona, and in a province-wide education network in Anhui, China.

Riverstone is among four companies that spun out of Cabletron Systems. Last year, another Cabletron decendent, Enterasys, faced an SEC investigation over improperly booked revenue. That issue has been resolved, but the probe ate up executives' time and energy.