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Technology Stocks : OmniVision Technologies (OVTI) -- Ignore unavailable to you. Want to Upgrade?

To: straight life who wrote (849)	12/11/2004 3:50:00 PM
From: Brian	Read Replies (2) \| Respond to of 2273

It looks to me like some short sellers are getting desperate! The current Greenberg gripe has to do with non material delayed revenue recognition. The complete section from the 10-q that Herb Greenberg referred to is: Restatement We restated our financial statements for the first, second and third quarters of fiscal 2004. We filed Form 10-Q/As for each of these quarters to reflect the restatement of the financial information for such periods. The restatements arose out of an internal review which was initiated in response to issues raised by an employee. We notified the Audit Committee of the Board of Directors of the issues raised, and the Audit Committee, with assistance from special legal counsel, conducted its own independent investigation. As a result of the internal review and the independent investigation, management and the Audit Committee determined that certain errors had occurred which principally affected the timing of revenue recognition for certain sales. The independent investigation concluded that there was no evidence of wrongdoing in connection with these errors. The restatement of our financial results for the first three quarters of fiscal 2004 related primarily to two issues identified as part of the internal review and independent investigation. First, beginning in the second half of fiscal 2003 and continuing through the first nine months of fiscal 2004, certain distribution sales, for which we recognize revenue on a "sell-through" basis, were not reported to us by one of our distributors in a timely manner. Additionally, in the second and third quarters of fiscal 2004, during the transition of testing operations and certain international sales functions to overseas locations, some shipments made to customers late in the quarter were incorrectly classified as transferring title upon delivery as opposed to upon shipment, and therefore revenue was not recognized when product was shipped. Both of these issues resulted in delayed revenue recognition. Both management and the Audit Committee determined that the errors did not have material effects on quarterly or annual financial statements for fiscal 2003 and, consequently, decided not to restate the quarterly or annual financial results for such periods. All financial data contained in this Quarterly Report on Form 10-Q for the quarter ended October 31, 2003 are as provided in the Quarterly Report on Form 10-Q/A for the quarter ended October 31, 2003. In connection with its independent investigation, the Audit Committee together with its special counsel informed the Securities and Exchange Commission, or SEC, of the matters reviewed during the independent investigation, including the matters relating to the Company's accounting, its internal accounting controls and the reporting of its financial results. The SEC is conducting an inquiry with respect to these matters. The Company is continuing to cooperate with the SEC.