OFF TOPIC
I heard that IFMX is restating 1996 earnings . . . AGAIN! This company is already the subject of a class action lawsuit. It looked like it was going to recover, with new management the stock got back to the 10 range. Now, Yikes!
I think IFMX is a special situation which will be isolated. I can't imagine that its problems (which are intracompany) will affect other techs.
MENLO PARK, Calif.--(BUSINESS WIRE)--Aug. 7, 1997--Informix Corporation (NASDAQ:IFMX), today announced that revenues
for the second quarter ended June 29 were $164.7 million, up 23 percent sequentially from the first quarter of 1997.
The company reported a net loss of $120.5 million or $(0.79) per share for the period, including a restructuring charge of $62.1
million related to personnel reductions and writedowns of certain assets.
Informix also announced that it has discovered errors in the recording of revenue in 1996. The company anticipates that its 1996
financial statements will be restated to reflect adjustments to revenue that will decrease revenue and net income from previously
reported amounts.
The company and its independent auditors are in the process of determining the extent of transactions, which based on findings and
information now known, should not have been recognized in 1996. At a minimum, some of the revenue from those transactions
should have been deferred to subsequent periods.
Based on the work completed to date, Informix estimates that approximately $70 million to $100 million of revenue will be adjusted.
The final amount will be dependent on the outcome of the work underway. Informix will provide 1996 financial information based on
the restatement as soon as possible.
Said Bob Finocchio, who was named chairman and chief executive officer in July: "We have applied our revenue recognition policies
very conservatively in Q2, resulting in recording revenue only for products and services sold directly to end users or through our
partners for identified customers. There were no increases in general "pool of funds" revenues from resellers this quarter."
"We are taking steps to position Informix with a solid foundation for the future. We continue to benefit from customer and partner
loyalty, demand for our products, and our market-leading technology," he continued. |
