Inso wipes $7M off 1998 books
Document publishing and XML vendor Inso is wiping approximately $7 million off the books for 1998 due to improperly reported revenue, the company announced today.
At issue is revenue reported in the first three quarters of 1998 that was improperly recognized under certain international distribution agreements.
Overshadowed by the restatement is Inso's reduction by $1.5 million of a charge for in-process R&D related to its Q1 '98 acquisition of Swedish SGML browser developer Synex.
The company now expects Q4 '98 revenues to be below expectations at approximately $15 million with yearly revenues of $60 million, and a net loss for both time frames. In the final quarter Inso must also absorb a $10 million to $14 million charge from its December acquisition of Sherpa.
Inso is "taking steps to make sure that we never again need to confront this situation," according to president and CEO Steven R. Vana-Paxhia. "We remain confident in the company's products, its people and its strategy for the future."
Wall Street reacted to the news with little sympathy. At day's end Inso stock had tumbled nearly 66% in heavy trading to $9.41 per share.