Peregrine finds $250 million in irregularities

Peregrine Systems expects to reduce its reported revenue for 2000, 2001, and the first three quarters of 2002 by about US$250 million to account for irregularities, the San Diego company said Thursday.

In May, after the resignations of its chief executive officer (CEO) and chief financial officer, Peregrine said it might have to restate revenue for the 11-quarter period by as much as $100 million. The infrastructure management software vendor has now finished its investigation into accounting irregularities, the company said in a statement.

Peregrine also said it expects to take a non-cash charge of about $100 million related to stock options issued during the restatement period. Furthermore, the company said it struck a deal with three U.S. banks to restructure $103 million in loans that it had incorrectly accounted for as sales of receivables.

Peregrine was delisted from the Nasdaq National Market at the opening of trading on Friday because the company did not file periodic reports with the U.S. Securities and Exchange Commission (SEC). The company also is under investigation by the SEC.

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