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Critical Path


restated its reported earnings and revenue for the third and fourth quarters, citing a change in the accounting for software licensing transactions and other revenue recognition issues.

The troubled Internet messaging services company revised its third-quarter revenue downward to $35.3 million. Critical Path had previously reported revenue of $45 million for the quarter. The company also more than doubled its losses, revising the bottom line to a loss of $18.6 million, or 30 cents a share, excluding charges. Critical Path originally reported a loss of $8.7 million, or 14 cents a share.

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The fourth-quarter figures also underwent major revisions as the new revenue total fell $9.7 million short of the previous report. The new revenue figure is $42.3 million, down from the top line of $52 million the company originally posted. The revised loss came to $23.3 million, or 33 cents a share. Critical Path had reported a loss of $11.5 million, or 16 cents a share.

Shares of Critical Path, which is based in San Francisco, lost 25 cents, or 16%, to $1.31 in recent