Seven years of restatements for software provider

NASDAQ-listed IP-based software provider
UTStarcom Inc has been forced to restate
seven years of revenue after an audit found errors in its revenue recognition.

An investigation by the company’s audit committee, independent legal counsel
and forensic accountants found issues with the accounting treatment of sales
contracts in western China.

The audit determined that revenue previously recorded in the region was
recognized earlier than it should have been.

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