Veritas to restate financial results

Veritas Software will restate its results for fiscal years 2000 and 2001 as a result of an investigation into a deal the software maker made with AOL Time Warner Inc., the company has announced.

Veritas will issue new results that erase US$20 million in revenue that was previously booked as licensing and support fees paid by the AOL Internet unit of AOL Time Warner, according to a statement. Veritas additionally said it will no longer count $20 million in advertising paid to AOL as an expense. The U.S. Securities and Exchange Commission (SEC) subpoenaed documents last year in relation to deals between Veritas and AOL as part of an investigation into AOL Time Warner's accounting practices.

This is not the first controversy to strike Veritas' bookkeeping practices. It fired Kenneth Lonchar, former executive vice president and CFO, in October after he admitted to lying about his academic credentials.

Veritas and AOL struck their deals in September of 2000. The periods affected include the fiscal years ended Dec. 31, 2000 and Dec. 31, 2001, and the quarters ended Dec. 31, 2000, through Sept. 30, 2002, Veritas said in the statement.

Veritas received $37 million from AOL in the fourth quarter of 2000 as part of a $50 million software purchase. Veritas had been counting the other $13 million in revenue over a three-year support period, the company said in the statement.

Veritas expects to file the restated results with the SEC by March 31.

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