Peregrine Says KPMG Told of Accounting Woes

Peregrine Systems Inc., which is being investigated by the Securities and Exchange Commission, said former auditor KPMG told the software maker its books violated rules involving revenue recognition, accounts receivable and stock options. KPMG had “questions and issues” about several aspects of the accounting. On May 23, San Diego-based Peregrine said it would erase about $100 million in sales from the last three years after KPMG found it had inflated revenue.

Peregrine named Gary Greenfield as chief executive to replace Steve Gardner. Its shares rose 23 cents, or 17%, to $1.61 on Nasdaq. The KPMG news came after the market’s close.