MatrixOne Issues Update on Financial Review
August 03 2005 - 8:31AM
Business Wire
MatrixOne, Inc. (NASDAQ: MONEE), a leading provider of
collaborative product lifecycle management (PLM) solutions for the
value chain(TM), today issued an update on the Company's previously
announced review of its revenue recognition practices being
conducted under the direction of the Audit Committee of its Board
of Directors. Based on the review, management and the Audit
Committee have concluded that errors in revenue recognition with
respect to the Company's Japanese subsidiary require the Company to
restate its previously reported financial results. The restatement,
which will also address other matters as described below, will
affect previously reported financial results from fiscal year 1999
through the second quarter of fiscal year 2005. The Company
currently expects to complete and file its periodic reports for the
quarter ended April 2, 2005 and the fiscal year ended July 2, 2005
by September 15, 2005. The Company has requested from NASDAQ an
extension until September 15, 2005 to meet its requirements for
continued listing. Upon the filing of these periodic reports, the
Company expects to be in compliance with NASDAQ's requirements for
continued listing. The Company believes adjustments to its
previously reported financial results are necessary because of the
discovered failure by certain managers and employees of the
Company's Japanese subsidiary to comply with the Company's revenue
recognition policies, and the failure by those managers and
employees and certain of the Company's Japanese distributors to
provide accurate information to the Company concerning arrangements
included as revenue in the Company's consolidated financial
statements. From fiscal year 1999 through the second quarter of
fiscal year 2005, the Company previously recognized $30.3 million
in software license revenues from its Japanese subsidiary, or
approximately 10% of the Company's software license revenues during
this period. The Company expects that the restatement will adjust
the fiscal periods in which certain previously paid for and
recognized revenues related to the Company's Japanese subsidiary
were recognized and that certain previously paid for and recognized
revenues will be deferred and recognized in future fiscal periods.
The Company currently believes that less than $1.0 million of
previously recognized revenues will be reversed and not recognized
as revenue in any later or future period. Except for the amount to
be reversed without future recognition, the Company has collected
all fees related to the transactions being adjusted. The Company
expects that the restatement, which is not yet complete and is
subject to audit by the Company's independent registered public
accounting firm, will also include other adjustments to asset and
liability accounts which, in total, are expected to increase net
income or reduce net loss in previously reported periods. In light
of the expected restatement, the financial statements reported in
the Company's periodic filings made with the Securities and
Exchange Commission through February 7, 2005 and elsewhere and all
earnings press releases and similar communications issued by the
Company relating to fiscal year 1999 through the second quarter of
fiscal year 2005 should not be relied upon. The Audit Committee has
discussed its conclusion with the Company's independent registered
public accounting firm who agrees that a restatement is necessary
and who is in the process of evaluating management's proposed
adjustments. Expenses to date related to the review have totaled
approximately $2.3 million, primarily related to legal and
accounting fees. About MatrixOne MatrixOne, Inc. (NASDAQ: MONEE) is
a recognized leader in delivering collaborative Product Lifecycle
Management (PLM) solutions. We provide flexible solutions that
unleash the creative power of global value chains to inspire
innovations and speed them to market. MatrixOne's customers include
global leaders in the aerospace and defense, automotive, consumer
products, high technology, life sciences, machinery, and the
process industries. MatrixOne (www.matrixone.com) is headquartered
in Westford, Massachusetts with locations throughout North America,
Europe, and Asia/Pacific. Safe Harbor Statement under the Private
Securities Litigation Reform Act of 1995 - Forward-looking
statements in this release do not constitute guarantees of future
performance. Such forward-looking statements are subject to risks
and uncertainties that could cause our actual results to differ
materially from those anticipated. Such statements relate, among
other things, to the expected impact of the restatement on our
financial and operating results as restated. The risks and
uncertainties that may affect forward-looking statements include,
among others: the risk of the delisting of our common stock on the
NASDAQ Stock Market, unforeseen issues encountered in the review of
our revenue recognition practices and the completion of our
quarterly financial review and audit for the fiscal year ended July
2, 2005 which may change the expected adjustments described herein.
For a more detailed discussion of the risks and uncertainties of
our business, please refer to our periodic reports and registration
statements filed with the Securities and Exchange Commission,
including our Annual Report on Form 10-K for the fiscal year ended
July 3, 2004, our Registration Statement on Form S-3 filed on
September 29, 2004 as amended, and our Quarterly Report on Form
10-Q for the fiscal quarter ended January 1, 2005. However, the
financial statements and other financial information therein may
not be relied upon until the restatement process and related audit
are completed. The forward-looking statements included in this
press release represent our views as of the date of this press
release. We anticipate that subsequent events and developments may
cause our views to change. We assume no obligation to update any
forward-looking information contained in this press release or with
respect to the announcements described herein. MatrixOne and the
MatrixOne logo are registered trademarks, and "a leading provider
of collaborative product lifecycle management (PLM) solutions for
the value chain" is a trademark of MatrixOne, Inc. All other
trademarks and service marks are the property of their respective
owners.
Matrixone (NASDAQ:MONEE)
Historical Stock Chart
From Aug 2024 to Sep 2024
Matrixone (NASDAQ:MONEE)
Historical Stock Chart
From Sep 2023 to Sep 2024