Symbol Shakes Up Management, Restates Financials - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Business & Finance

Symbol Shakes Up Management, Restates Financials

CEO and acting chairman Richard Bravman stepped down from both positions, and the company filed its much-delayed annual report for 2002.

Symbol Technologies Inc. on Tuesday reshuffled its management lineup in the wake of a government investigation into its past accounting practices. CEO and acting chairman Richard Bravman stepped down from both positions, and the maker of bar-code readers, handheld computers, and networking systems used to capture, manage, and share data, also filed its much-delayed 2002 annual report, which includes revenue and earnings restatements for the years 1998 through 2001 as well as the first three quarters of 2002.

William Nuti and Salvatore Iannuzzi will take over as CEO and chairman, respectively. Nuti, formerly Symbol's president and chief operating officer, says his plan is to build a governance structure that will improve the company's financial reporting processes and to continue providing customers with the technology needed "to enable enterprise mobility."

Symbol ran into trouble during the second quarter of 2001, when it prematurely recorded about $860,000 in revenue. Bravman, who was part of that accounting decision, said in a company news release that he was voluntarily stepping aside to prevent his involvement with the transaction from influencing the outcome of the U.S. Attorney's investigation of Symbol. The Securities and Exchange Commission is investigating the timing and extent of revenue recognition as well as several categories of cost of revenue and operating expenses.

To correct for improperly recorded revenue, the company is reversing about $234 million in cumulative revenue and $325 million in cumulative net earnings recorded during the course of the restatement period. Symbol is also taking a $98.3 million pretax charge for 2002 as a result of shareholder litigation settlements.

"My goal is very simple," says Nuti, who joined Symbol in August 2002 after a decade at Cisco Systems. "The company is committed to world-class governance. It is important to turn the company around from a governance point of view." Part of this strategy is to divide the chief executive and chairman responsibilities between Nuti and Iannuzzi, who in mid-December joined Symbol as a nonemployee board member.

Also in mid-December, Symbol and IBM disclosed plans to develop new handheld wireless computers running IBM's WebSphere Micro Edition and MQ Everyplace messaging software to let users access data from Siebel, SAP, J.D. Edwards, or PeopleSoft apps as well as IBM DB2e. Symbol will integrate devices with embedded IBM mobile middleware so workers will be able to use their handhelds to rapidly access data from back-end computer systems running on Intel-based IBM xSeries servers.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
The State of Cloud Computing - Fall 2020
The State of Cloud Computing - Fall 2020
Download this report to compare how cloud usage and spending patterns have changed in 2020, and how respondents think they'll evolve over the next two years.
InformationWeek Is Getting an Upgrade!

Find out more about our plans to improve the look, functionality, and performance of the InformationWeek site in the coming months.

Slideshows
11 Things IT Professionals Wish They Knew Earlier in Their Careers
Lisa Morgan, Freelance Writer,  4/6/2021
News
Time to Shift Your Job Search Out of Neutral
Jessica Davis, Senior Editor, Enterprise Apps,  3/31/2021
Commentary
Does Identity Hinder Hybrid-Cloud and Multi-Cloud Adoption?
Joao-Pierre S. Ruth, Senior Writer,  4/1/2021
Register for InformationWeek Newsletters
Video
Current Issue
Successful Strategies for Digital Transformation
Download this report to learn about the latest technologies and best practices or ensuring a successful transition from outdated business transformation tactics.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll