Accounting & Tax

BroadVision Receives Wells Notice

The restatement concerned revenue recognition for a single software license agreement for which the company had received payment in full.
Stephen TaubJuly 26, 2004

The Securities and Exchange Commission is likely to bring charges against BroadVision Inc., stemming from the company’s restatement of its financials for the third and fourth quarters of 2001.

The provider of self-service web applications announced that it has received a Wells notice, which indicates that the SEC staff has made a preliminary decision to recommend that the commission bring a civil action. Recipients have the opportunity to respond to the SEC staff before a formal recommendation is finalized.

The restatement concerned revenue from a single software license agreement. According to BroadVision, the company recognized revenue from that agreement in its entirety in the third quarter of 2001, after it had received payment in full from the customer.

Drive Business Strategy and Growth

Drive Business Strategy and Growth

Learn how NetSuite Financial Management allows you to quickly and easily model what-if scenarios and generate reports.

The company later determined that the revenue recognition should instead be prorated over the four-year life of the agreement, and it has been accounting for the revenue accordingly for all periods since the third quarter of 2001.

The SEC’s investigation began after the company voluntarily disclosed its incorrect revenue recognition, according to BroadVision.