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ets (ETS) Message Board

  • mainnnman mainnnman Feb 4, 2002 9:04 AM Flag

    LOOK OUT BELOW

    Writing on the wall;
    On Friday, Enterasys said it delayed releasing its fourth-quarter and 2001 fiscal year financial results in order to review details of a $4 million sales contract. The company said it was investigating some issues identified by management arising from the terms of the contract recorded by its Asia-Pacific operations.
    Close @ 1.70 - 1.90

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    • dude, its a 4 million dollr sales contract, big whoop.

      • 1 Reply to jpizon
      • More writing on the wall;
        Riverstone Networks (RSTN: news, chart, profile) dropped 11 percent to $14 on news that Enterasys Networks (ETS: news, chart, profile) is being investigated by the Securities and Exchange Commission despite a statement from Riverstone over the weekend that it's not part of the probe. Both Riverstone and Enterasys were spun out from the former Cabletron Systems.

    • Re: Conf call this morning.

      Asia Pacific deal is unrelated to SEC investigation.

      A/P: Q4 review of contracts identified contract w ts and cs that did not allow revenue recognition. But KPMG copy of contract DID allow for revenue recognition.

      Thus ETS triggered review of all A/P contracts and engaged Ropes & Gray who engaged D&T Asia for these reviews. Will take about 2 weeks.

      3 A/P employees on adminstrative leave of absence - Gary Jackson appointed as new Pres of A/P, others named and search for additional strength in management continues.

      SEC - sent formal order with no indication of the scope of the investigation. Henry clearly said that Aprisma would be included in the investigation.

      Hope: That this is all Aprisma and they can cut this off and not affect ETS stock too appreciably. Snip the toenail and get on with it.