ENGLEWOOD, Colo. (AP)--Software firm Quovadx says the Securities and Exchange Commission is looking into its decision to restate 2003 financial results because it booked revenue before receiving any cash.
The Englewood-based company said the informal investigation centers on the March 15 announcement to restate third quarter results and revise fourth quarter preliminary results.
The company said its moves were the result of sales to Infotech Network Group.
``The company has determined that revenue on prior shipments of software product to Infotech Network Group will be recognized only when cash is received,'' Quovadx said on March 15. ``The restatement removes all revenue associated with contracts between the company and Infotech Network Group from its published financial reports for 2003. To date, Quovadx has been unsuccessful in collecting funds from this customer.''
At least six lawsuits have been filed against Quovadx on behalf of shareholders upset by the Infotech deals. Attorneys for the plaintiffs say that booking the revenue improperly boosted the price they paid for Quovadx stock.
Quovadx helps more than 20,000 customers worldwide develop, extend and integrate software applications. It has more than 600 employees.
In trading Tuesday on the Nasdaq Stock Market, Quovadx shares were down 4 cents to close at $3.62.
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