Just when we thought that it was safe to go back in the water....
APR 03,2000 5:05 PACIFIC 8:05 EASTERN
( BW)(CA-LEGATO-SYSTEMS)(LGTO) Legato Defers 10-K Filing, Announces
Preliminary First Quarter 2000 Results
Business Editors/High-Tech Writers
MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--April 3, 2000--Legato
Systems, Inc. (Nasdaq:LGTO), a worldwide leader in enterprise storage
management, today announced that on March 31, 2000 it filed with the
Securities and Exchange Commission a Notification of Late Filing with
respect to its Annual Report on Form 10-K for the year ended December
31, 1999. The Company expects to file its Form 10-K on or before April
14, 2000.
In its notification, the Company reported that it was unable to
file its Form 10-K by March 30, 2000 because, based on its regular
first quarter review of certain fourth quarter 1999 transactions, it
discovered additional information that related to such transactions.
The Company has requested that its independent auditors evaluate such
transactions in light of this additional information. The Company's
Annual Report on Form 10-K for the year ended December 31, 1999 will
be filed upon completion of this evaluation.
During its ordinary-course review of collection matters, the
Company recently learned that a small number of its sales
representatives, acting outside their authority, had entered into side
agreements involving approximately $7 million of fourth quarter 1999
revenues. The Company and its outside auditors are currently
completing their review of the Company's 1999 financial results, and
expect this review to be completed by April 14, 2000. The Company
anticipates that its 1999 revenues as released on January 19, 2000,
will be reduced upon completion of this review. The Company will
provide further information regarding the results of this review
following its completion.
The Company also announced today its preliminary financial results
for the first quarter of fiscal year 2000. The Company estimates that
its revenue for the first quarter ended March 31, 2000 will be in the
range of $54 million to $56 million. The Company expects to release
complete financial results and provide additional information relating
to the first quarter on April 19, 2000.
Separately, the Company today announced a realignment of certain
management duties. Kent Smith, currently Executive Vice President for
Strategic Alliances, will expand his role and reassume responsibility
for worldwide sales from David Malmstedt, who has left the Company to
pursue other interests. Mr. Smith will report to Louis C. Cole, the
Company's Chief Executive Officer, as Executive Vice President,
Worldwide Sales, Support and Corporate Marketing.
Nora Denzel, Senior Vice President Product Operations, has
reassumed responsibility for all product operations, including both
the Data Protection and Data Availability solutions. Jim Chappell,
formerly Senior Vice President, Data Availability, will report to
Louis Cole in a new role as Senior Vice President, Plans and Controls,
responsible for developing and managing the Company's strategic and
operational plans.
This press release contains forward-looking statements about the
Company's revenue recognition and financial results for the fourth
quarter and fiscal year 1999, the date by which the Company will file
its Form 10-K for fiscal 1999 and the estimated range for revenue in
the first quarter of fiscal 2000. These forward-looking statements
involve a number of risks and uncertainties that could cause actual
results to differ materially. The Company may determine that further
accounting adjustments should be made for the transactions currently
being evaluated by the Company and its auditors. The Company and its
auditors may review additional transactions that occurred during
fiscal 1999 and determine that further accounting adjustments should
be made. If further accounting adjustments are made, these adjustments
may materially increase the amount of the adjustment that the Company
currently believes it will record for the fourth quarter of 1999, and
may require a restatement of other quarters in fiscal 1999. The
Company and its auditors may not complete their evaluation in time to
file the Form 10-K by April 14, 2000. The Company may review
transactions that occurred during the first quarter of fiscal 2000 or
otherwise make accounting adjustments that could cause first quarter
revenue to fall materially below the Company's current estimated
range.
About Legato Systems
Legato Systems, Inc. (Nasdaq: LGTO), is a worldwide leader in the
enterprise storage management software market. Helping companies
leverage business-critical, corporate data assets, Legato's products
and services enable information continuance, a seamless approach to
the movement, management and protection of data throughout an
enterprise. Founded in 1989, Legato's storage management software
products have become the recognized industry standard with the largest
installed base representing over 65,000 customers. Legato's products
are available through a network of Legato-licensed resellers,
integrators and OEM partners. Legato's corporate headquarters is
located at 2350 El Camino Real, Mountain View, CA 94040. Telephone:
650/210-7000.
Note to Editors: Legato Systems, Inc. and Legato logo are
registered trademarks of Legato Systems, Inc. in the U.S. and/or other
countries. All other product, trademark, company, or service names
mentioned herein are the property of their respective owners |
