Peregrine Systems to restate earnings

Transportation software provider Peregrine Systems Inc. today said it would restate its earnings for the past 11 quarters, adding that federal regulators are formally investigating its accounting practices. Peregrine, maker of the Transportation 5.0 suite, said the restatement for fiscal 2000, fiscal 2001 and the first three quarters of fiscal 2002 would correct irregularities for revenue recognition

Transportation software provider Peregrine Systems Inc. today said it would restate its earnings for the past 11 quarters, adding that federal regulators are formally investigating its accounting practices.

Peregrine, maker of the Transportation 5.0 suite, said the restatement for fiscal 2000, fiscal 2001 and the first three quarters of fiscal 2002 would correct irregularities for revenue recognition of as much as $100 million.

The accounting problems were flagged earlier this month by KPMG, which the company hired in April to replace Arthur Andersen as its independent auditor.

In April, Peregrine delayed reporting results for the fourth quarter of 2002, citing the auditor change. At that time, it said its audit committee was looking at whether the company had failed to adjust revenue from software deals made through partners, consultants and retailers if a product was returned.

After KMPG's findings, Peregrine announced the resignation of CEO Steve Gardner and CFO Matt Glass.

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