Motive to Expand Previously Announced Restatement
April 03 2006 - 8:00AM
Business Wire
Will Miss Nasdaq Filing Deadline; Company Says Cash Position and
Customer Base Strong Motive, Inc. (NASDAQ: MOTVE), a leading
provider of broadband management software, today announced it filed
a Form 8-K with the Securities and Exchange Commission (SEC)
disclosing the company's decision to expand its previously
announced financial restatement to include periods dating back to
2001. The company had earlier announced that the restatement would
cover periods dating back to and including the second quarter 2004.
As a result of the expanded restatement, the company also said that
it will require additional time to file its financial reports with
the SEC and, as a result, will be unable to meet Nasdaq's April 13,
2006, deadline. Accordingly, Motive's common stock will be subject
to delisting from The Nasdaq National Market. "These restatements
involve very complex software revenue recognition practices.
However, we are committed to getting it right," said Motive's newly
appointed Chairman and Chief Executive Officer Alfred Mockett. "The
restatements are not a reflection on our core business or strategic
vision, but an indication of our commitment to address past
accounting issues, correct them, and put them definitively behind
us." "Motive is a sound company. Our customer base, contracts in
force, cash position and the quality of our products are strong,"
he emphasized. "If delisted, we will file for relisting with Nasdaq
as soon as possible after all financial reports are up-to-date and
filed." In its 8-K, Motive said it recently concluded that
insufficient evidence existed to support the Company's prior
determination that vendor specific objective evidence (VSOE) of
fair value for maintenance existed for the majority of its software
arrangements. Generally speaking, the presence of VSOE of fair
value permits the revenue of a bundled software arrangement to be
allocated among that arrangement's various elements, such as
license, maintenance, consulting, and hosting services. The absence
of VSOE of fair value is expected only to impact the timing of
revenue recognized and does not call into question the validity of
the underlying transactions or revenue. Generally speaking, the
absence of VSOE of fair value is expected to result in the
recognition of revenue over longer periods of time. As Motive's
2006 guidance was based on having VSOE of fair value for its
software arrangements and the company will need time to determine
the impact of its absence on future periods, Motive said investors
should not rely on previously issued 2006 guidance. The revised
results are not anticipated to have any effect on the company's
reported cash and other liquid asset positions. The company's cash
and short-term investments totaled approximately $59 million as of
December 31, 2005, and are expected to be approximately $56 million
as of March 31, 2006. The filing states that as a result of
management's determination, certain financial statements previously
issued by the company should no longer be relied upon. Those
statements pertain to the following periods: the fiscal years ended
December 31, 2001, 2002, 2003 and 2004, and the interim periods
contained therein; the three-month period ended March 31, 2005; and
the three-month and six-month periods ended June 30, 2005. The
filing also notes that the Audit Committee of the company's Board
of Directors expanded the scope of its ongoing review to include
matters associated with whether VSOE of fair value was established
and maintained by the company. The 8-K further states that the
efforts of management and the Audit Committee are ongoing.
Consequently, the company said it is possible that it may identify
additional or different issues that could further impact previously
issued financial statements, and that these issues and their impact
on such financial statements could be material. Motive said that it
anticipates its quarterly report on Form 10-Q for the quarter
ending March 31, 2006 will not be timely filed. As soon as
reasonably possible, Motive intends to file amendments to its
Quarterly and Annual Reports on Form 10-Q and Form 10-K for the
appropriate periods, as well as its Quarterly Report on Form 10-Q
for the quarter ended September 30, 2005, and its Annual Report on
Form 10-K for the year ended December 31, 2005. About Motive, Inc.
Motive, Inc. (NASDAQ: MOTVE) has pioneered a unique approach to
designing management services into Internet-era networks, systems
and applications. Motive's software makes complex products and
services self-managing, reducing overhead costs and optimizing
customers' return on investment. Companies worldwide have relied on
Motive's software to provide a range of problem remediation and
configuration management tasks for more than 45 million endpoints.
Founded in 1997, Motive is headquartered in Austin, Texas, and has
offices in Europe and Asia. For more information, visit
www.motive.com. This press release contains forward-looking
statements. Actual events or results may differ materially from
those described in this press release. Additional information
concerning risk factors associated with our business can be found
in our filings with the Securities and Exchange Commission, which
are available at www.sec.gov. Statements included in this press
release are based upon information known to us as of the date of
this release, and we assume no obligation to update any information
contained in this press release. Motive and the Motive logo are
trademarks or registered trademarks of Motive, Inc. All other
products or services mentioned herein are trademarks of their
respective holders.
Motive (NASDAQ:MOTVE)
Historical Stock Chart
From Jun 2024 to Jul 2024
Motive (NASDAQ:MOTVE)
Historical Stock Chart
From Jul 2023 to Jul 2024