LOS ANGELES -- Transaction Systems Architects Inc., the parent of ATM software company ACI Worldwide, on Aug. 8 said the U.S. Securities and Exchange Commission has launched a formal investigation into the company's restatement of its past financial results.
According to a Reuters report, the company said it is cooperating fully after the SEC issued a "formal order of private investigation."
The company in January of 2003 restated its financial results going back to 1998 after examining its longstanding practice of booking revenue from software licensing when agreements were made, even though the fees were collected in installments over several years. (See related story ACI parent wants to put 'trying time' behind it with restated earnings)
The license fees issue attracted the attention of the SEC, according to the Omaha World-Herald, which reported that the SEC had made informal contacts with Transaction Systems Architects following its restatement of earnings.
For the third fiscal quarter of 2003 ended June 30, Transaction Systems Architects reported a net loss of $1.9 million, or five cents a share, on revenue of $73.8 million. The results included a charge of $9.3 million, related to the 2001 acquisition of MessagingDirect. In the year-earlier quarter, the company reported net income of $5 million, or 14 cents a share, on revenue of $69.4 million.
