Symantec Reports Findings Of Audit Committee Investigation - Quick Facts

(RTTNews) - Symantec Corp. (SYMC) announced the Audit Committee, assisted by independent legal counsel and a forensic accounting firm, conducted a thorough investigation of the allegations raised by a former employee. The company said it does not anticipate a restatement or adjustment of any audited or unaudited, filed or previously announced, GAAP or non-GAAP financial statements; with respect to a specific transaction with a customer entered into in the fourth quarter of fiscal 2018. The company noted that no employment actions with respect to any Section 16 officer have been recommended as a result of the investigation.

The Audit Committee reviewed a transaction with a customer for which $13 million was recognized as revenue in the fourth quarter of fiscal 2018. After subsequent review of the transaction, the company has concluded that $12 million of the $13 million should be deferred. The company said the previously announced financial results for the fourth quarter of fiscal 2018 and the first quarter of fiscal 2019 will be revised to take into account this deferral.

Symantec said it is working diligently to complete the preparation of the Form 10-K and the first-quarter Form 10-Q and to facilitate the audit of the fiscal 2018 financial statements and the review of the first-quarter financial statements by its outside auditors. The company noted that it cannot predict at this time when it will make such filings, but is currently targeting filing the Form 10-K prior to October 27, 2018.

The Audit Committee proposed certain recommendations which the Board has adopted, including: appointing a separate Chief Accounting Officer; appointing a separate Chief Compliance Officer reporting to the Audit Committee; clarifying and enhancing the Code of Conduct and related policies; and adopting certain enhanced controls and policies related to the matters investigated.