CUPERTINO, Calif. (Dow Jones) -- NetManage Inc. (NETME) said prior year losses may have been understated by $4 million to $5 million from its "other comprehensive income account."
In a press release Wednesday, the host-access and integration systems company said it requested Deloitte & Touche to re-audit its financial statements for the years ended Dec. 31, and Dec. 31, 2000, and said other matters "may come to the company's attention which require correction."
NetManage doesn't expect any restatements to hurt cash or shareholder equity. Revisions would "result in an increase in accumulated deficit with an offsetting reduction in accumulated other comprehensive loss."
The company reported a loss of $9.3 million, or 14 cents a share, including an income tax provision of $409,000, on revenue of about $80 million for its year ended Dec 31.
For its year ended Dec. 31, 2000, NetManage reported a loss of $71.9 million, or $1.11 a share, including items, on revenue of $104.1 million.
NetManage had delayed filing its second quarter results with the SEC earlier this month, saying it was reviewing its translation adjustment account. The company plans to file the revised Form 10-Q's and Form 10-K's with the Securities and Exchange Commission once the re-audit is complete.
Arthur Andersen LLP was NetManage's accountant until the middle of this year.
Copyright © 2002, Dow Jones Newswires
Published by Globes [online] - www.globes.co.il - on 28 August 2002