Commerce One: We Saw a Revenue Problem With Stock Warrants Early On
The software industry practice of trading warrants for revenue, which recently caught the attention of the Securities and Exchange Commission is nothing new to Commerce One (CMRC). The firm said it's already dealt with the issue in the past.
Peter Pervere, CFO of the B2B software maker, told investors at the JPMorgan H&Q Technology Conference that the company did not recognize revenue from a joint venture with Royal Dutch/Shell (RD) last year because of revenue-for-warrants concerns.
"We have our auditors look at every transaction we do very closely," Pervere told investors at a break-out session here. "Shell is an example of where we did not recognize revenue when the warrant was in place in that instance."
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