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Unify to Restate Profit; 2 Execs Put on Leave

August 01, 2000|From Bloomberg News

SAN JOSE — Unify Corp. said Monday it will restate earnings for fiscal 2000 and possibly some of 1999 and placed two top executives on leave, after the maker of electronic-commerce software found revenue was improperly stated.

Unify also said earnings for the fiscal first quarter ended Monday will miss analyst expectations of 9 cents a share.

The San Jose-based company's audit committee of directors hired PricewaterhouseCoopers to help with its investigation.

Chief Executive and President Reza Mikailli, who's been on medical leave, and Chief Financial Officer and acting CEO Gary Pado, are on administrative leave while the matter is investigated, the company said. Steven Whiteman, a member of the audit committee, was named acting CEO and CFO.

A company spokeswoman said she didn't know when the investigation would be completed and didn't elaborate on the revenue problems.

Unify on May 23 said sales for fiscal 2000 jumped 28% to $39.5 million from the previous year. Net income climbed to $15.3 million from $4.4 million in 1999.

Unify shares were halted before the start of regular U.S. trading, and Nasdaq said they would remain halted until the company satisfied a request for additional information.

The shares fell 34 cents, or 8%, to $3.94 on Friday, dropping to a 52-week low of $3.63 earlier in the day.

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