Peregrine Systems Inc, which only emerged from Chapter 11 protection in August, faces a major new problem after admitting it faces delays in filing its reports with the SEC for fiscal 2003 and the first two quarters of fiscal 2004.
CFO Ken Sexton said while it had made significant progress toward the completion of its reports, it had taken longer than anticipated to resolve the treatment of major restructuring activities, including the sale of several businesses during 2003.
Even worse, the asset management software company says that it is unable to accurately predict when it will be able to make the filings. To help its finance team in the task, it has recruited David Sugishita, a financial executive with nearly 30 years in the technology industry, to direct key initiatives to improve the company’s financial operations and infrastructure. CEO John Mutch said it recognized a need to improve its financial controls and procedures.
Peregrine’s new financial woes come only a few months after the San Diego, California-based company emerged from a grim period that followed the discovery by its auditors of revenue-recognition irregularities in May 2002, and CEO Steve Gardner and CFO Matt Glass were forced to quit the company. Peregrine had to wipe out $509m of revenue for its 2001 and 2000 fiscal years when its books were finally re-audited in March this year.
It filed for Chapter 11 bankruptcy protection in September 2002 and emerged in August with CEO John Mutch hopeful of re-listing the company on Nasdaq as early as February 2004. Its shares are currently traded on the over-the-counter market.
This article is based on material originally produced by ComputerWire.