Saba Announces Results of Internal Accounting Review
Saba (NASDAQ: SABA) announced Friday the results of the accounting review voluntarily initiated by the Audit Committee of its Board of Directors. That review, which is substantially complete, was conducted by the Committee with the assistance of independent professional advisors.
The Audit Committee identified instances of improper time-recording in the Company's professional services business, in some cases at the direction of supervisors. The Audit Committee also determined that the Company prematurely recorded revenue of $271,000 on an international transaction in the quarter ended November 30, 2010.
The Board of Directors has adopted the Committee's findings, and has directed management to conduct additional work to evaluate the potential impact of the findings on the Company's accounting and revenue recognition. The Company is performing its analysis but has not reached a determination about whether a restatement will be required with respect to any of the Company's historical financial results. Until such a determination is made, the Company's historical financial results should not be relied upon.
The Audit Committee further concluded as a result of the review process that the Company's executive officers did not participate in or otherwise have knowledge of the issues identified above.
The Board and the Audit Committee have also directed management to consider a number of remedial measures.
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