Matrixone (NASDAQ:MONEE)
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From Jun 2019 to Jun 2024
MatrixOne, Inc. (NASDAQ: MONEE), a leading provider of
collaborative product lifecycle management (PLM) solutions for the
value chain(TM), today issued an update on the Company's previously
announced review of its revenue recognition practices being conducted
under the direction of the Audit Committee of its Board of Directors.
Based on the review, management and the Audit Committee have concluded
that errors in revenue recognition with respect to the Company's
Japanese subsidiary require the Company to restate its previously
reported financial results. The restatement, which will also address
other matters as described below, will affect previously reported
financial results from fiscal year 1999 through the second quarter of
fiscal year 2005. The Company currently expects to complete and file
its periodic reports for the quarter ended April 2, 2005 and the
fiscal year ended July 2, 2005 by September 15, 2005. The Company has
requested from NASDAQ an extension until September 15, 2005 to meet
its requirements for continued listing. Upon the filing of these
periodic reports, the Company expects to be in compliance with
NASDAQ's requirements for continued listing.
The Company believes adjustments to its previously reported
financial results are necessary because of the discovered failure by
certain managers and employees of the Company's Japanese subsidiary to
comply with the Company's revenue recognition policies, and the
failure by those managers and employees and certain of the Company's
Japanese distributors to provide accurate information to the Company
concerning arrangements included as revenue in the Company's
consolidated financial statements. From fiscal year 1999 through the
second quarter of fiscal year 2005, the Company previously recognized
$30.3 million in software license revenues from its Japanese
subsidiary, or approximately 10% of the Company's software license
revenues during this period. The Company expects that the restatement
will adjust the fiscal periods in which certain previously paid for
and recognized revenues related to the Company's Japanese subsidiary
were recognized and that certain previously paid for and recognized
revenues will be deferred and recognized in future fiscal periods. The
Company currently believes that less than $1.0 million of previously
recognized revenues will be reversed and not recognized as revenue in
any later or future period. Except for the amount to be reversed
without future recognition, the Company has collected all fees related
to the transactions being adjusted. The Company expects that the
restatement, which is not yet complete and is subject to audit by the
Company's independent registered public accounting firm, will also
include other adjustments to asset and liability accounts which, in
total, are expected to increase net income or reduce net loss in
previously reported periods. In light of the expected restatement, the
financial statements reported in the Company's periodic filings made
with the Securities and Exchange Commission through February 7, 2005
and elsewhere and all earnings press releases and similar
communications issued by the Company relating to fiscal year 1999
through the second quarter of fiscal year 2005 should not be relied
upon. The Audit Committee has discussed its conclusion with the
Company's independent registered public accounting firm who agrees
that a restatement is necessary and who is in the process of
evaluating management's proposed adjustments. Expenses to date related
to the review have totaled approximately $2.3 million, primarily
related to legal and accounting fees.
About MatrixOne
MatrixOne, Inc. (NASDAQ: MONEE) is a recognized leader in
delivering collaborative Product Lifecycle Management (PLM) solutions.
We provide flexible solutions that unleash the creative power of
global value chains to inspire innovations and speed them to market.
MatrixOne's customers include global leaders in the aerospace and
defense, automotive, consumer products, high technology, life
sciences, machinery, and the process industries. MatrixOne
(www.matrixone.com) is headquartered in Westford, Massachusetts with
locations throughout North America, Europe, and Asia/Pacific.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995 - Forward-looking statements in this release do not
constitute guarantees of future performance. Such forward-looking
statements are subject to risks and uncertainties that could cause our
actual results to differ materially from those anticipated. Such
statements relate, among other things, to the expected impact of the
restatement on our financial and operating results as restated. The
risks and uncertainties that may affect forward-looking statements
include, among others: the risk of the delisting of our common stock
on the NASDAQ Stock Market, unforeseen issues encountered in the
review of our revenue recognition practices and the completion of our
quarterly financial review and audit for the fiscal year ended July 2,
2005 which may change the expected adjustments described herein. For a
more detailed discussion of the risks and uncertainties of our
business, please refer to our periodic reports and registration
statements filed with the Securities and Exchange Commission,
including our Annual Report on Form 10-K for the fiscal year ended
July 3, 2004, our Registration Statement on Form S-3 filed on
September 29, 2004 as amended, and our Quarterly Report on Form 10-Q
for the fiscal quarter ended January 1, 2005. However, the financial
statements and other financial information therein may not be relied
upon until the restatement process and related audit are completed.
The forward-looking statements included in this press release
represent our views as of the date of this press release. We
anticipate that subsequent events and developments may cause our views
to change. We assume no obligation to update any forward-looking
information contained in this press release or with respect to the
announcements described herein.
MatrixOne and the MatrixOne logo are registered trademarks, and "a
leading provider of collaborative product lifecycle management (PLM)
solutions for the value chain" is a trademark of MatrixOne, Inc. All
other trademarks and service marks are the property of their
respective owners.