FREMONT -- A software maker fired its chairman and CEO and announced it would remove millions of dollars in earnings after a company audit revealed fraudulent financial documentation.
Alan Anderson was dismissed Wednesday after an internal investigation found that three transactions totaling $13.5 million had documentation discrepancies, the company said.
Quintus said it would restate its financial results from Oct. 17, adding that the previous statement should not be relied upon.
The firing came one week after the Fremont-based company said it would delay a regulatory filing as it looked into payments reported as revenue from an outsourcing company to determine if the transactions actually existed.
According to an investor's notice on the Quintus Web site, a $4.5 million revenue item was based on falsified documentation and must be completely removed from the company's financial statements. A second item for approximately $2 million was based on falsified documentation and unsatisfied performance obligations. In addition, $7 million from a valid contract was recognized based on falsified documentation and its reporting as revenue depends on the receipt of purchase.<