Software

Try Jim Cramer's Action Alerts PLUS
CLICK HERE NOW

Whistleblower Rocks Openwave

05/14/08 - 02:17 PM EDT

Kevin Kelleher

It's almost never a good thing when a company says it's going to delay reporting their earnings.

But when it's delayed because a whistleblower is sounding alarms about the company's recent financials, watch out.

That was the unsavory situation that Openwave has found itself.

Its stock fell 6% Tuesday after it made an SEC filing that said "it will delay the filing of its quarterly report on Form 10-Q for the three months ended March 31, 2008 pending the conclusion of an internal investigation being conducted ... into allegations made by an employee relating to attempts by certain members of senior management to manage financial results."

"Managing financial results" sounds like exactly what a company's management should be doing. A cynic might point out that this is proof that Openwave's management has not been managing, but it's more likely this is a very nuanced way of saying someone in the know knows something fishy about Openwave's recent numbers.

The board's audit committee -- all independent directors, and including former Intel controller Patrick Jones and ex-Palm CEO Robin Abrams -- are working with independent counsel to look into the charges, but so far "the investigation has not reached any conclusion that the company's previously issued financial statements and earnings releases were materially misleading," the company said in a statement.

Openwave details its whistle blower policy on its Web site. Infringements could be as mild as an accidental aberration from internal controls or as serious as insider trading or fraud.

Previous «
1 2 3

Life & Money

Software

Go To Section Home


05/14/08
HP Rebounds After EDS Announcement

The initial sell-off of HP shares after the merger announcement was an overreaction, an analyst says.


05/14/08
Big Blue to Meet Its Match in HP-EDS

The merger is expected to create an aggressive competitor on IBM's scale.


05/13/08
EDS Merger Is Deja Vu for H-P Investors

Shares fall as stockholders express concerns over the merger. But if CEO Mark Hurd (above) succeeds, the move will reshape the market for technology consulting and outsourcing services.


08/05/08
Three Internet Stocks That Could Double

These forgotten Internet stocks are being accumulated by hedge funds.


08/15/08
The Five Dumbest Things on Wall Street

Raspberries for Apple; You'll be sorry, UBS; Fortress or Fort Knox? Wholly unappetizing Foods; give Liberty AOL or give them...


08/15/08
McCain Fund-Raising Picks Up

The GOP presidential candidate raised $27 million in July.


08/15/08
Cash-Back Cards Aren't Money in the Bank

Some credit and debit cards give you some cash back on purchases. But you need to manage it well to benefit from it.


Your Recent Quotes: Quote Up0 | Quote Down0
Dow S&P 500 NASDAQ
Oil*
Gold
10 Yr
0.00%
%
%
%
Data delayed 20 min
Sign up for our FREE newsletters now. See All

  • Cramer's Daily Booyah!
  • Before the Bell

Premium Stock Ideas
Access Action Alerts Plus to find out Cramer’s latest picks now!