StarBase to Restate Deficit

StarBase Corp., the Irvine company that makes software tools for computer developers and Web site creators, said Monday that it will restate its financial results for the last three years, adding a total $15.9 million to the accumulated deficit.

The results for 1995, 1996 and 1997 are being restated to comply with a regulatory change in accounting for preferred stock that is offered at a discount, StarBase said. The company added a deficit of about $7.6 million for 1995, $6.8 million for 1996, and $1.5 million for 1997.

Staff also pointed out that past aggregate losses, current operating results and ongoing operations are unaffected by the change. The company had posted losses of $19.3 million over the last three years.

The announcement came after the stock market closed. StarBase stock dropped 19 cents Monday, closing at $2.28 a share on the Nasdaq small-cap market.