Veritas to restate financial results

Veritas to restate financial results

Veritas Software will restate its results for the fiscal years 2000 and 2001 as a result of an investigation into a deal the software maker made with AOL Time Warner.

In a statement, Veritas said that it would issue new results that erased $US20 million in revenue that was previously booked as licensing and support fees paid by the AOL Internet unit of AOL Time Warner. The company also said it would no longer count $US20 million in advertising paid to AOL as an expense.

The US Securities and Exchange Commission (SEC) subpoenaed documents last year in relation to deals between Veritas and AOL as part of an investigation into AOL Time Warner's accounting practices.

This is not the first controversy to strike Veritas' bookkeeping practices. It fired former executive vice president and CFO, Kenneth Lonchar, in October after he admitted to lying about his academic credentials.

Veritas and AOL struck their deals in September 2000. The periods affected include the fiscal years ending December 31, 2000 and December 31, 2001, and the quarters ending December 31, 2000, through to September 30, 2002, Veritas said.

The company received $US37 million from AOL in the fourth quarter of 2000 as part of a $US50 million software purchase. Veritas had been counting the other $US13 million in revenue over a three-year support period.

Veritas expects to file the restated results with the SEC by March 31.

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