In a regulatory filing the company disclosed that it has concluded that the timing of revenue recognition under certain managed service contracts was incorrect. Accordingly, the company will revise its financial statements to correct these errors. The company is still evaluating the impact, if any, of the restatement on total revenue recognized over the life of managed service contracts; however, the company believes, based on information available to date, that due to changes in timing of revenue recognition, certain amounts of bad debt expense related to such contracts may instead be accounted for as reduced revenue after restatement. Furthermore, the company believes, based on information available to date, that the restatement will have no impact on the timing or magnitude of cash flows from operations, reflect deferred timing of revenue recognition leading to an increase in deferred revenue or other liabilities reported in prior periods, and (3) lead to increases in revenue recognized in future periods. Because the company is in the process of restating its financial statements as described above, the company has not been able to complete its financial statements for the quarter ended June 30.
- Investment & Company Information
- revenue recognition