BaltimoreTechnologies, the Dublin-based internet security firm, said yesterday revenues at its Japanese unit were overstated by about £1.5 million sterling (€2.5 million) over the 18 months to June 30th last year. The admission of overstated revenues was the second made by the firm in less than a year following similar revelations uncovered at its Asian operation in July 2001.
Baltimore said revenues, operating profits and shareholders funds for the period would be cut by less than 2 per cent after adjusting for the overstatement.Revenue in 2000 would fall by £724,000 to £69.4 million. In the six months to June 30th, 2001, revenue would drop by £735,000 to £38.7 million.
A Baltimore spokeswoman said the discrepancies at the Japanese subsidiary were due to signed contracts that had been booked as revenues but which never materialised.
Baltimore said it had found the overstatements when it sold its holding in its Japanese subsidiary to 19 per cent from 62.5 per cent at the beginning of February for £4.73 million. Mr Barry Dixon, technology analyst with Davys Stockbrokers, said while the overall revenue cuts were small it would not improve sentiment towards the stock.
Since losing its place on the prestigious FTSE 100 last year, Baltimore has lost the confidence of investors following a series of PR blunders. Last July it admitted it had overbooked £5 million in revenues at its Indian, Middle Eastern and African region. This followed an incident when the firm shocked the stock market with two profit warnings in the space of three weeks. Baltimore's share price remained unchanged yesterday at 10 pence sterling.
