Network Associates To Restate Years-Old Results

Network Associates

The company will also restate its Dec. 31, 2001 and March 31, 2002 balance sheets to give effect for the accumulated prior-year adjustments.

In a Friday morning conference call, Network Associates executives stressed that results of operations for the year ended Dec. 31, 2001 and quarter ended March 31, 2002 will not be impacted.

"We found no evidence of incorrect accounting in 2001 or 2002," said George Samenuk, chairman and CEO of Network Associates. Samenuk joined the company in January 2001 and replaced all top financial executives in the company, he said.

"I take full responsibility for cleaning up [the errors and for preventing anything like this from ever happening again," Samenuk added.

Network Associates expects to file its restated results with the Securities and Exchange Commission by the end of June. The company has already contacted the SEC regarding the expected changes, but executives said they have no information on how its internal investigation may impact the SEC's own previously disclosed investigation.

Among the findings in the internal investigation, Network Associates determined it will need to reduce 1998 net income by $4 million, from $36.4 million to $32.4 million; decrease 1999 loss by $3 million, from $159.9 million to $156.9 million; and increase its loss in 2000 by $21.2 million, from $102.7 million to $123.9 million.