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The consultancy and outsourcing firm, which uncovered a $90 million-plus accounting error in December, also announced that it will not file its 2004 annual report on time.
Stephen Taub, CFO.com | US
March 18, 2005
Oracle Corp. chief financial officer Harry You has resigned just eight months after taking the post. He will become the chief executive officer of consultancy and outsourcing firm BearingPoint.
The software giant announced that co-president Safra Catz will take on the additional responsibilities of acting CFO until Oracle hires a new finance chief.
"We are proud of the numerous Oracle alumni that have gone on to become CEOs of enterprise software and IT service firms," said Oracle chief executive officer Larry Ellison, in a statement. "We wish Harry good fortune in his new job and look forward to partnering with him and BearingPoint for years to come."
You, who joined Oracle from Accenture, a rival of BearingPoint, is not exactly leaving at a good time, despite Ellison's good wishes. Not only is Oracle integrating its recent acquisition of PeopleSoft, but the company is also locked in a battle with rival SAP to buy Retek Inc. On Thursday Oracle lifted its all-cash offer by 25 cents, to $11.25 per share. Oracle already owns 5.5 million shares of Retek, nearly 10 percent of total shares outstanding.
In making the announcement of You's new position, BearingPoint chairman and interim CEO Rod McGeary said, "We've worked tirelessly to improve our financial position, grow revenue, strengthen client relationships and refocus on our people. The addition of Harry You will accelerate all of these efforts. He brings a wealth of experience in our marketplace and his background in corporate finance will be invaluable as he takes the reins of this management team under the board's directive to put issues of control and transparency to rest once and for all."
Harry You himself, however, may have little opportunity to rest.
BearingPoint also announced that it will not file its 2004 annual report on time. The company stated the need to validate financial information due to control deficiencies; the need to confirm information generated by the company's new financial accounting system, particularly in the area of revenue recognition; and the company's ongoing efforts to complete management's assessment of its internal controls over financial reporting.
In November, BearingPoint CFO Robert Falcone said he would retire, and the company announced that it found a $92.9 million accounting error.
Joe Corbett, the company's recently appointed executive vice president and chief financial officer, said Thursday: "In the two months since I joined BearingPoint, our new management team has identified issues that must be addressed. As a result, we have significantly expanded our review procedures and are working to evaluate all material financial and accounting matters."
For his part, You stated, "Our first order of business will be to reestablish financial credibility and consistency with an unswerving commitment to transparency in disclosure and rigorous financial processes."
You is no stranger to BearingPoint. Prior to joining Accenture in 2001, he was managing director in charge of the Computer and Business Services Group at Morgan Stanley, which led the initial public offering of BearingPoint in February 2001.