The charge they will take in Q1 for "employee downsizing" will effect the book value, but, I suspect, only minimally: e.g., a 1 million dollar charge would shave book vlaue only by $.10.
The accounting errors (reported Monday) have to due with revenue recognition on software sales. As yet, we do not know the exact nature of the errors. If, for instance, they are merely the aggressive recognition of revenues (in which software companies have been known to engage), the revenues would have been recognized only too early, and would be recognizable in the future. If it's something else, we need to know exactly what was occuring. But, as best as I can see, neither the cash nor book value will change. (Any contrary opinions, with documentation, would be appreciated.)
Regards,
Steve |
