By Sally Watson, 2 January 2001 11:25
NEWS The company has been forced to revise its previous forecasts, dropping its expected losses by 25 per cent. Larson's resignation was accompanied by that of Peter Watkins, president of NAI, and Prabhat Goyal, CFO. NAI took a $120m one-off loss in Q4 from a change in its accounting practices, designed to deflect criticism that the company was over-selling to its resellers. Under the changes NAI will now wait to book revenue until after distributors sell the equipment on to end users. In a statement NAI defended its position, saying: "The company further believes that the lower fourth quarter demand is not related to the general competitiveness of its products but is due to concerns about the state of the economy from the customer base." NAI declined to predict results for the beginning of the new year. Larson and Goyal will remain at the company until replacements are found.
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