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....announces postponement for one week of release of fourth and 1997 annual results...
Sybase, Inc., today announced the postponement of its release of final results for the fourth quarter and the year ending 31 December 1997. In the course of completing its audit of 1997 results, Sybase has learned of the improper revenue recognition relating to a number of transactions by the company's Japanese subsidiary. All of the responsible individuals have either resigned or been released.
The impact on revenues is currently estimated to range from $60-$65 million and will require the reversal of revenues in the fourth quarter and the restatement of revenues for the first three quarters of 1997. The company estimates that it will report a loss for the fourth quarter substantially in excess of the preliminarily estimated results announced on 2 January 1998.
"We find it highly disturbing that the actions of a few individuals have impacted the achievements and integrity of Sybase employees throughout the world," said Mitchell Kertzman, chairman and CEO of Sybase. "This incident is completely contrary to Sybase's corporate culture, and behavior of this sort has not and will not be tolerated by the company," he said. "We have taken immediate, aggressive action to resolve this situation, and are committed to the highest standards of ethics, business and accounting conduct."
Sybase expects to complete its audit and announce final results for the fourth quarter and year ended 31 December, 1997, on 28 January, 1998.
The company's expectations are preliminary, subject to the company closing its books and the company's management and independent auditors completing their customary annual audit procedures. The estimated amounts of revenue, anticipated date for release of final results and the potential consequences of the foregoing matters discussed in this announcement constitute forward looking statements. Actual results for the company's fourth quarter and for the 1997 fiscal year could materially differ from those estimated depending on a number of factors, including whether all orders included in estimated revenues meet the company's revenue recognition requirements, the adequacy of estimated expense accruals and reserves, the adequacy of the estimated tax provided for the fourth quarter and fiscal year adjustments arising from the customary annual audit by management and the company's independent auditors. Additional factors that could cause actual events or results to differ materially are described in the company's Quarterly Report on Form 10-Q filed with SEC for the quarter ended 30 September, 1997.
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Notes to editors
About Sybase
Headquartered in Emeryville, Calif., Sybase, Inc. is a worldwide leader in distributed, open computing solutions with record revenues in 1996 of over $1 billion. The company provides customers and partners with software and services to create business solutions for strategic, competitive advantage. These high-performance, end-to-end solutions encompass client/server, Internet and intranet transaction processing and data mart and data warehousing applications. The company's Adaptive Component Architecture enables rapid design, development and deployment of distributed multi-tier business applications. The company's product lines include Sybase high-performance database servers, Enterprise Connect distributed data access and connectivity products and Powersoft enterprise development tools. The company's Internet address is http://www.sybase.com.
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