Taleo has announced in a company statement that it has completed the review of its revenue recognition practices. As a result, $18 million of consulting services revenue recognized through June 30, 2008 to future periods will be deferred.
The company would restate financial statements for the years ended Dec. 31, 2003 through 2007, and the interim financial statements for the quarters ended March 31, 2008, and June 30, 2008. The revenue deferred beyond June 30, 2008 represents less than 4% of the Company’s total revenues previously recognized over the restated period.
Taleo said it recognized $85 million in consulting revenue and $378 million of application revenue during the restated period.
“We are pleased to conclude this very technical accounting review,” said Michael Gregoire, Chairman and CEO of Taleo. “Throughout the review, Taleo has remained focused on our business and has maintained our high level of service for our customers. We believe that our Talent Management solutions remain crucial for companies working to optimize their staff investments — which can make the difference for them between surviving and thriving.”
The restatement will not impact total revenue under contract or cash flow from operations.
The 2008 Annual Report will be filed by the end of April.
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