Business Objects retract results after phoney deal

Tools firm Business Objects has taken the unusual step of restating its Q1 results as it announces figures for Q2 1996.

The company has removed a contract valued at $1.4 million from its Q1 results after it said an employee had fabricated a deal to bolster sales figures.

In a statement, the firm said the contract had 'circumvented standard financial control procedures'. The statement cited the employee for misconduct and said that disciplinary measures had been taken.

As a result, Q1 turnover was $18.8 million and not the $20.2 million it had recorded originally. Restated profit was $1.8 million rather than $2.5 million.

Bernard Liautaud, president and CEO, said: 'We believe this was an isolated incident have taken appropriate actions.'

Q2 turnover for Business Objects was $22 million, 61 per cent up on $13.6 million for the period ending 30 June last year. Profit stood at $1.9 million for Q2 1996, up 30 per cent on $1.5 million for Q2 1995.