Keep on Truckin': DOJ Says Andersen Destroyed Tons of Evidence

Metawave to Restate; Side Deals in Asia Blamed
Wireless-antenna maker Metawave Communications Corp. said it would restate 2001 earnings due, in part, to questionable accounting. The restatement will lower the company's previously claimed income by around 15 percent.

In after-hours trading following the announcement, Metawave's share price plunged nearly 50 percent—and that's on top of an 8 percent drop during regular trading hours.

Metawave's management also noted the company will be cutting staff by half. The company also said that Stuart Fuhlendorf, its chief financial officer since March 2000, would leave. Fuhlendorf will be replaced by controller Randy Scheer.

The company also expects to reduce its reported 2001 revenue of $43.6 million by $5 million to $7 million. That would be about a 13 percent reduction.

In a conference call with analysts, CEO Bob Hunsberger said the restatement resulted from "unauthorized commitments" to some customers in Asia. "What we discovered was some side letters to customers that allowed them to return the product to us under certain circumstances," said Hunsberger. "Given the accounting rules, this would have precluded revenue recognition."

Hunsberger said future regulatory filings will detail how the restatements will affect earnings.

Earlier in the week, rival telecommunications companies WorldCom and Qwest Communications said the SEC is probing their accounting practices.

Accenture Shakes Up Things
Consultancy Accenture has formed an Office of the CEO. That office is comprised of chairman and chief executive officer Joe Forehand and COO Steve James. The creation of the office is part of a major shakeup at the former Andersen consulting unit.

"Our future rests on our ability to evolve our strategy and organization to stay relevant to our clients," said Forehand in a statement. "With these changes, we are confident that we continue to build a management team that is focused on delivering to our clients the very best solutions to the challenges of a changing business environment and accelerating the growth of our company."

Among the key appointments:

• Gregg Hartemayer has been named group chief executive of the Technology & Outsourcing Capability Group.
  
  

• Tim Breene has been named group chief executive of the Business Consulting Capability Group.
  
  

• Mark Foster has been named group chief executive of the Products Operating Group, assuming the previous responsibilities of Hartemayer. Foster, who most recently served as managing partner for Products-Europe and has been instrumental in the development of Accenture's strategy, will also join the management committee.
  
  

• Accenture also named four additional group chief executives: Bill Green in Communications & High Tech, David Hunter in Government, Karl-Heinz Floether in Financial Services, and Mary Tolan in Resources.

• In addition, Gill Rider will become the chief leadership officer. "Rider will place special emphasis on developing the leadership capabilities and professional skills of Accenture's people, and fostering a culture that encourages diversity and achievement," stated the company. She has also been named to the management committee. Rider is a former head of the company's resources operating unit in Europe, the Middle East and Africa, and Latin America, and is a former chair of the United Kingdom/Ireland geographic council.
  
  

• Mike McGrath has been named chief risk officer.
  
  

• Jack Wilson, Accenture's corporate development officer, will continue to support the operating groups in their business development efforts, and will take on additional responsibilities as chairman of the capital committee, replacing McGrath.
  
  

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