Systems Software Associates (SSA) has blamed changes in the way it reports its figures for its second consecutive loss this year, but believes it is now only one quarter away from profitability.
At the same time, the supplier of enterprise resource planning applications acknowledged that it had been obliged to restate its 1994 and 1995 figures.
The move followed a disagreement in September with its auditors of 15 years, Price Waterhouse, on whether it should have booked three contracts over the 1994-5 period.
SSA subsequently sacked the organisation and appointed KPMG Peat Marwick to take over, but KPMG upheld the decision to reverse $10.1 million in revenues for 1994 and $20 million for 1995.
For the year ending 31 October 1996, SSA generated sales of $226.7 million, down nine per cent from $250 million in the previous year, with net losses of $32.8 million, compared with profits of $26.6 million the year before.
The firm also made an operating loss of $58.8 million, reversing income of $41.1 million last time, but does not plan to make redundancies to lower expenses. It will continue with the cost-cutting exercises, however, which it claims saved it $35 million last year.
Roger Covey, SSA?s chief executive, said: ?We made some very significant investments last year, especially in R&D, where we spent $100 million, a 70 per cent increase on the previous year. Version 6 of BPCS was much more difficult to develop than we thought and cost a lot more money, which hit the bottom line. But, while profit is not certain for Q1, I?m very confident for Q2.?
Also affecting the figures was the adoption of more conservative accounting practices regarding revenue recognition, which meant that, in future, sales to resellers would only be recorded when a product was sold to end users.
But the company?s European performance, particularly in relation to sales of BPCS version 6.0, had also caused problems, although Covey hoped it would be back on track by the first quarter.
Cotton seedling freezes to death as Chang'e-4 shuts down for the Moon's 14-day lunar night
Fortnite easily out-earns PUBG, Assassin's Creed Odyssey and Red Dead Redemption 2 in 2018
Meteor showers as a service will be visible for about 100 kilometres in all directions
Saturn's rings only formed in the past 100 million years, suggests analysis of Cassini space probe data
New findings contradict conventional belief that Saturn's rings were formed along with the planet about 4.5 billion years ago