Red Hat to restate three years' earnings
Published: 13 Jul 2004 14:20 BST
Red Hat announced on Tuesday it was restating revenue and earnings going back to 2002, as the company changes the way in which it accounts for subscription revenue.
The Linux company, which recently reported the resignation of its chief financial officer, said it made its decision to change its revenue recognition after a discussion last month with its new independent auditors, PricewaterhouseCoopers.
The company will now recognise its subscription revenues on a daily basis, rather than a monthly basis.
As a result, the company will restate its revenues and earnings for fiscal years 2002, 2003 and 2004, which ended at the end of February. The company will also restate its un-audited financial statements for its first quarter, which ended 31 May.
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