At least the Bosses get to keep their bonus. I was sure worried about that!
Terayon Announces Retention of Current Auditor to Audit 2004 Financial Statements
Friday , May 26, 2006 17:21 ET
SANTA CLARA, Calif., May 26, 2006 /PRNewswire-FirstCall via COMTEX/ -- Terayon Communication Systems, Inc. (Pink Sheets: TERN.PK) today announced that it has retained Stonefield Josephson, Inc., which is currently auditing the Company's consolidated financial statements for the year ended December 31, 2005, to audit the Company's consolidated financial statements for the year ended December 31, 2004 and review the quarters of 2004 and, if necessary, to audit the Company's consolidated financial statements for the year ended December 31, 2003 and review the quarters of 2003. Management is continuing to review the financial statements and the Company's revenue recognition policies to determine whether it will recommend to the Audit Committee that the previously announced restatement of the Company's consolidated financial statements for 2004 will require any additional restatements or audits for any prior periods, such as 2003. FTI Consulting has been retained to assist management in determining and implementing the Company's revenue recognition policies.
As previously disclosed, there can be no assurance that management or the Company's independent auditor will not identify additional issues or other considerations in connection with the restatement and the audit and review process, or that these issues or considerations will not require additional adjustments to the Company's prior financial results for annual or quarterly periods in addition to 2004. The filing of the Company's Form 10-K for the fiscal year ended December 31, 2005 and the Company's Form 10-Q's for the quarters ended March 31, 2006 and September 30, 2005 will be delayed pending the completion of the restated consolidated historical financial statements. In light of the uncertainty over the timing of the completion of the restatements, the Company has withdrawn its appeal to the NASDAQ Listing and Hearing Review Council to review the NASDAQ Listing Qualifications Panel's March 31, 2006 decision to delist the Company's securities from The NASDAQ National Market.
In addition, the Company's Board of Directors approved the terms of the bonus arrangements for Jerry Chase, the Company's Chief Executive Officer, and Mark Richman, the Company's Chief Financial Officer. Under the approved bonus arrangements, Messrs. Chase and Richman are eligible to earn a target bonus equal to 75% of their respective base salaries in accordance with their employment agreements. Bonus awards, if any, will be based on achievement of specified EBITDA and revenue objectives, each of which will be weighted equally and will determine payment of the respective portion of the target bonus amount.
~ ~ Safe to take a position here?... ‹(•¿•)›
