Consolidated Statement of Operations data for the year ended December 31, 2002

 

As previously

 

 

 

 

 

 

reported

Adjustments

As restated

 

 

 

 

 

 

 

Revenues

$

10,569

$

439

$

11,008

Gross profit

 

3,771

 

134

 

3,905

Operating earnings (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 earnings (loss) per 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 Operations data for the year 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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues and cost of revenues

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:

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.

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Reliant FORM 10-K manual Revenues and cost of revenues