California Software Plans to Adjust Its Books
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California Software Corp. said Monday it will restate its financial results for 1999 and the first quarter this year after its accounting firm questioned the Irvine company’s method of recording revenue for new products.
The company said it logged revenue on new products as they were shipped, setting aside reserves to cover returned items. But California Software’s new accounting firm, Stark Tinter & Associates LLC, said the procedure resulted in overstated revenue.
The accounting firm will determine the amounts involved in an audit, California Software said. The company reported revenue of $12 million last year and $3.1 million in the first quarter this year.
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