Peregrine Systems Officials Resign
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SAN DIEGO (AP) _ The chairman and the chief financial officer of Peregrine Systems Inc. resigned after the software company’s new auditor questioned as much as $100 million in transactions, it was announced Monday.
The company’s stock plunged nearly 60 percent in early trading to just over $1 a share.
Peregrine said the potential problems were discovered by independent auditor KPMG, which was hired in April to replace Arthur Andersen LLP, the company marred by the Enron scandal.
Steve Gardner resigned as board chairman and chief executive, Peregrine said in a statement. Also resigning was Matt Glass, chief financial officer and executive vice president of finance.
John Moores was chosen as the new chairman while Rick Nelson was appointed acting chief executive and a member of the board. Fred Gerson was named acting chief financial officer, and Charles La Bella was appointed as executive vice president and senior counsel.
Peregrine said ``potential accounting inaccuracies″ will be investigated by the audit committee of its board of directors.
``Certain transactions involving revenue recognition irregularities, totaling as much as $100 million, have been called into question and may have been recorded during periods in fiscal 2001 and 2002,″ the company said. ``These transactions were recorded initially as revenue from the company’s indirect channels and may have been written off in later quarters.″
In early trading on the Nasdaq Stock Market, Peregrine Systems shares were down $1.53 at $1.04.
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