Motive (NASDAQ:MOTVE)
Historical Stock Chart
From Jun 2019 to Jun 2024
Will Miss Nasdaq Filing Deadline;
Company Says Cash Position and Customer Base Strong
Motive, Inc. (NASDAQ: MOTVE), a leading provider of broadband
management software, today announced it filed a Form 8-K with the
Securities and Exchange Commission (SEC) disclosing the company's
decision to expand its previously announced financial restatement to
include periods dating back to 2001. The company had earlier announced
that the restatement would cover periods dating back to and including
the second quarter 2004.
As a result of the expanded restatement, the company also said
that it will require additional time to file its financial reports
with the SEC and, as a result, will be unable to meet Nasdaq's April
13, 2006, deadline. Accordingly, Motive's common stock will be subject
to delisting from The Nasdaq National Market.
"These restatements involve very complex software revenue
recognition practices. However, we are committed to getting it right,"
said Motive's newly appointed Chairman and Chief Executive Officer
Alfred Mockett. "The restatements are not a reflection on our core
business or strategic vision, but an indication of our commitment to
address past accounting issues, correct them, and put them
definitively behind us."
"Motive is a sound company. Our customer base, contracts in force,
cash position and the quality of our products are strong," he
emphasized. "If delisted, we will file for relisting with Nasdaq as
soon as possible after all financial reports are up-to-date and
filed."
In its 8-K, Motive said it recently concluded that insufficient
evidence existed to support the Company's prior determination that
vendor specific objective evidence (VSOE) of fair value for
maintenance existed for the majority of its software arrangements.
Generally speaking, the presence of VSOE of fair value permits the
revenue of a bundled software arrangement to be allocated among that
arrangement's various elements, such as license, maintenance,
consulting, and hosting services.
The absence of VSOE of fair value is expected only to impact the
timing of revenue recognized and does not call into question the
validity of the underlying transactions or revenue. Generally
speaking, the absence of VSOE of fair value is expected to result in
the recognition of revenue over longer periods of time.
As Motive's 2006 guidance was based on having VSOE of fair value
for its software arrangements and the company will need time to
determine the impact of its absence on future periods, Motive said
investors should not rely on previously issued 2006 guidance.
The revised results are not anticipated to have any effect on the
company's reported cash and other liquid asset positions. The
company's cash and short-term investments totaled approximately $59
million as of December 31, 2005, and are expected to be approximately
$56 million as of March 31, 2006.
The filing states that as a result of management's determination,
certain financial statements previously issued by the company should
no longer be relied upon. Those statements pertain to the following
periods: the fiscal years ended December 31, 2001, 2002, 2003 and
2004, and the interim periods contained therein; the three-month
period ended March 31, 2005; and the three-month and six-month periods
ended June 30, 2005.
The filing also notes that the Audit Committee of the company's
Board of Directors expanded the scope of its ongoing review to include
matters associated with whether VSOE of fair value was established and
maintained by the company.
The 8-K further states that the efforts of management and the
Audit Committee are ongoing. Consequently, the company said it is
possible that it may identify additional or different issues that
could further impact previously issued financial statements, and that
these issues and their impact on such financial statements could be
material.
Motive said that it anticipates its quarterly report on Form 10-Q
for the quarter ending March 31, 2006 will not be timely filed. As
soon as reasonably possible, Motive intends to file amendments to its
Quarterly and Annual Reports on Form 10-Q and Form 10-K for the
appropriate periods, as well as its Quarterly Report on Form 10-Q for
the quarter ended September 30, 2005, and its Annual Report on Form
10-K for the year ended December 31, 2005.
About Motive, Inc.
Motive, Inc. (NASDAQ: MOTVE) has pioneered a unique approach to
designing management services into Internet-era networks, systems and
applications. Motive's software makes complex products and services
self-managing, reducing overhead costs and optimizing customers'
return on investment. Companies worldwide have relied on Motive's
software to provide a range of problem remediation and configuration
management tasks for more than 45 million endpoints. Founded in 1997,
Motive is headquartered in Austin, Texas, and has offices in Europe
and Asia. For more information, visit www.motive.com.
This press release contains forward-looking statements. Actual
events or results may differ materially from those described in this
press release. Additional information concerning risk factors
associated with our business can be found in our filings with the
Securities and Exchange Commission, which are available at
www.sec.gov. Statements included in this press release are based upon
information known to us as of the date of this release, and we assume
no obligation to update any information contained in this press
release.
Motive and the Motive logo are trademarks or registered trademarks
of Motive, Inc. All other products or services mentioned herein are
trademarks of their respective holders.