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Pastimes : Home on the range where the buffalo roam -- Ignore unavailable to you. Want to Upgrade?

To: jjkirk who wrote (4078)	8/24/2000 1:12:15 PM
From: jhg_in_kc	Read Replies (2) \| Respond to of 13572

LGTO UP ON HEAVY VOL. Would anyone nibble at this one? ================ By Kathy Chu Of DOW JONES NEWSWIRES NEW YORK -- Battered shares of Legato Systems Inc. (LGTO) got a 16% boost Wednesday as investors snapped up a stock that some observers saw as undervalued. An analyst said Legato may have reached a bottom, having fallen so far that investors now see it as a bargain. Legato lost 90% of its value in 2000 to hit a 52-week low of $8.13 on Aug. 17. The eight-month-long slide came amid earnings restatements that began in January and continue to dog the company. Long-standing rumors of a takeover by EMC Corp. (EMC) also resurfaced Wednesday and circulated on Internet message boards. A Legato Systems spokesman said he wasn't aware of any news releases Wednesday. He declined to comment on the rumors, as did a spokesman at EMC. SEC to probe Legato financial restatement By Bloomberg News August 16, 2000, 11:00 a.m. PT Legato Systems, a data storage software maker, said U.S. regulators plan to formally investigate the company's restatement of financial results for 1999. Legato Quote Snapshot LGTO 11.50 +0.88 Enter symbol: · Symbol Lookup Quotes delayed 20+ minutes in June restated results after finding that members of its sales force entered into unauthorized side agreements with resellers that allowed the resellers to pay Legato only after receiving payment from their customers and to pay on extended terms. Revenue had to be reduced because the fees in such cases wouldn't have been fixed or determinable. The Mountain View, Calif.-based company said in a filing that the U.S. Securities and Exchange Commission plans to formally order an investigation of the restatement of financial results. After restating results, Legato said net income for the year was $2.7 million on sales of $228.6 million, reducing sales by about $23 million from the results originally reported. Legato shares have declined by almost 90 percent this year, closing yesterday at $8.97.