Riverstone Updates on Audit

Riverstone Networks provides update on audit and financial statement status

July 13, 2005

1 Min Read

SANTA CLARA, Calif. -- Riverstone Networks (RSTN.PK), a leading provider of Carrier Ethernet Networks, today provided an update on its pending audit and status of its outstanding financial statements.

As previously announced, Riverstone Networks retained a new registered independent public accounting firm, Grant Thornton LLP ("GT"), in October 2004, replacing Ernst & Young LLP. In the course of completing the fiscal year 2004 audit, GT raised certain technical issues concerning the accounting treatment of revenue for products and services delivered to customers. The Company believes that these issues relate only to the timing of revenue recognition in specific periods, and not whether sales transactions occurred. Further, Riverstone notes that the issues under discussion do not involve accounting irregularities, and have no impact on the Company's cash position. Rather, the delay in the Company's filing its financial statements is the result of complexity regarding the application of Generally Accepted Accounting Principles ("GAAP") to the Company's sales transactions. Together with its auditors, the Company has been consulting with the Office of the Chief Accountant of the Securities & Exchange Commission ("SEC") regarding the proper application of GAAP to the Company's revenue transactions. The discussions among the Company, GT and the SEC are on-going. As soon as these accounting issues are resolved, the Company will provide additional information regarding the filing of its financial statements.

Riverstone Networks Inc.

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like