CIMdata PLM Industry Summary Online Archive
26 April 2005
Financial News
MatrixOne to Delay Release of Results for the Third Quarter of Fiscal Year 2005
MatrixOne, Inc. announced that it will delay the release of its financial results for the three month period ended April 2, 2005 pending a review of the Company's revenue recognition practices prompted by incorrect recognition of revenue at the Company's Japanese subsidiary in fiscal year 2005. The review, which will address fiscal year 2005 and earlier periods, is not complete and may uncover other findings. The Company expects to announce results for the third quarter of fiscal year 2005 when the review has been completed.
The Company initiated the review after determining that two transactions in the first quarter of fiscal year 2005, totaling approximately $411,000 of software license revenue, should not have been recognized because, in violation of Company policy, the Company's Japanese subsidiary granted a distributor a right of return. The Company expects that software license revenue relating to one of these transactions in the approximate amount of $135,000 may be recognized in a future fiscal period, and that software license revenue relating to the other transaction will be reversed. The current accounts receivable balance for the Company's Japanese subsidiary related to previously recognized software license revenue is approximately $20,000.
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