Redwood Shores, CA (USA), July 2012 - Saba, a provider of enterprise solutions, has announced the results of the accounting review voluntarily initiated by the Audit Committee of its Board of Directors. The review 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 30 November 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 its 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 Saba'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.
"I want to thank the members of the Audit Committee for their hard work and diligence in the accounting review process", says Bobby Yazdani, Saba's founder and CEO. "I'm confident that Saba will emerge a stronger company as a result of their efforts."
