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Revenues and cost of revenues were impacted by various errors related to revenue recognition, corrections to foreign exchange accounting,
intercompany related items, special charges and other adjustments, including financial statement reclassifications. The net impact to revenues
of the adjustments was an increase of $439 and $1,492 for the years ended December 31, 2002 and 2001, respectively. The net impact to cost
of revenues related to these revenue adjustments, and the other corrections, was an increase of $305 and $598 for the years ended
December 31, 2002 and 2001, respectively. The Second Restatement adjustments to revenues and cost of revenues related primarily to the
following items:
43
Consolidated Statement of O
p
erations data for the
y
ear ended December 31, 2002
As previously
reported Adjustments As restated
Revenues $ 10,569 $ 439 $ 11,008
Gross profit 3,771 134 3,905
O
p
eratin
g
earnin
g
s (loss) (3,435) 363 (3,072)
Earnings (loss) from continuing operations before income taxes, minority interests and equity in net loss of
associated companies (3,721) 372 (3,349)
Net earnings (loss) from continuing operations (3,286) 393 (2,893)
Net earnings (loss) from discontinued operations — net of tax 20 (121) (101)
Net earnings (loss) (3,266) 272 (2,994)
Basic and diluted earnin
g
s (loss)
p
er common share
— from continuing operations $ (0.86) $ 0.11 $ (0.75)
— from discontinued operations 0.01 (0.04) (0.03)
Basic and diluted earnings (loss) per common share $ (0.85) $ 0.07 $ (0.78)
Consolidated Statement of O
p
erations data for the
y
ear ended December 31, 2001
As previously
reported Adjustments As restated
Revenues $ 17,408 $ 1,492 $ 18,900
Gross profit 3,394 894 4,288
Operating earnings (loss) (26,469) 1,449 (25,020)
Earnings (loss) from continuing operations before income taxes, minority interests and equity in net loss of
associated companies (27,176) 1,339 (25,837)
Net earnings (loss) from continuing operations (24,174) 904 (23,270)
Net earnings (loss) from discontinued operations — net of tax (2,996) 529 (2,467)
Net earnings (loss) (27,155) 1,433 (25,722)
Basic and diluted earnings (loss) per common share
— from continuing operations $ (7.58) $ 0.28 $ (7.30)
— from discontinued operations (0.94) 0.16 (0.78)
Basic and diluted earnings (loss) per common share $ (8.52) $ 0.44 $ (8.08)
R
evenues and cost o
f
revenues
• incorrect application of SEC Staff Accounting Bulletin, or SAB, No. 104, Revenue Recognition (preceded by SAB 101), or SAB
104, or AICPA Statement of Position, or SOP, 97-2, Software Revenue Recognition, or SOP 97-2, the most significant of which
related to revenue that should have been deferred until title or risk of loss had passed, or products had been delivered;
• incorrect recognition of revenue upon product delivery to a certain reseller; and
• various other adjustments, primarily related to specific contracts and transactions and errors related to non-cash incentives and
concessions provided to customers.