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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: chaz who wrote (52579)	8/29/2002 7:01:13 PM
From: Lizzie Tudor	Read Replies (1) \| Respond to of 54805

prgne just released the results of their investigation, Peregrine acknowledged Thursday that it took out loans against its accounts receivable and then counted that money as sales. Management said the company has restructured about $103 million of those loans, so that it can now pay them off over four years. the total amt is 250mm over 11 qtrs, said in May that it would have to restate its numbers for fiscal years 2000 and 2001 and for the first nine months of fiscal-year 2002. The expected size of that restatement was revealed Thursday. SAN DIEGO (CBS.MW) -- Peregrine Systems said Thursday that it will have to take $250 million of revenue off its books after an investigation revealed improper accounting. marketwatch.com This is not bad at all, and certainly better than expecations. Also the loans were restructured at 6% to be repaid over 4 years. I don't believe they will be factoring going forward, they have some covenants that require 12mm EBDITA per qtr. The bad news in the release is the stock will be delisted. My source tells me another month before the global audit is done. Still, even after the delisting news the stock is up about .10 at the close... since the real overhang was the threat of BK and that appears to be gone. Lizzie