STOCKWATCH - Restatement as we head into war
STOCKWATCH - Restatement as we head into war
Veritas re-stated its earnings for 2000 and 2001 again on Monday. The storage software vendor had to restate its earnings after its statement in January was revealed to have wrongly included software sales and advertising deals with AOL Time Warner.
An internal audit by Veritas uncovered the deals with AOL Time Warner, which is under investigation by the Securities and Exchange Commission (SEC) at present.
Wednesday's restatement revises the AOL deal and brings Veritas' net loss for 2000 to around the US$7 million mark and reduces its revenues by $17 million to $1,190 billion. This has increased Veritas' net loss to $628.4 million and cut its revenue by a further $2.9 million to $1.187 billion Reuters reports. The restatement high-lighted some good news, in fiscal 2001 Veritas reduced its operating expenses down to $1.798 billion and brought back nearly $600,000 in revenue with total sales of $1.492 billion.
As StockWatch went to press US forces had begun their invasion of Iraq. The last few weeks have seen the markets adversely affected by world tensions as investors tried to second guess whether George W Bush would attack and invade Iraq. With the attack predicted for Wednesday following an end to diplomatic attempts by the United States the markets have so far not reacted adversely, Japan's Nikkei index rallied as the war begun.
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