Taleo Announces Amendment To Financial Statements To Correct Previously Reported Accretion Of Preferred Dividends Calculation
SAN FRANCISCO, CA — December 6, 2005 – Taleo Corporation (Nasdaq: TLEO), the leading provider of on demand talent management solutions, today announced that the Company’s previously issued financial statements for the years ended December 31, 2002, 2003 and 2004, and the interim financial statements for the quarters ended June 30, 2005 and September 30, 2005 will be restated to correct an error relating to the calculation of the dividends on the Company’s preferred stock prior to its conversion on October 4, 2005.
The decision was made by the Audit Committee of the Board of Directors, following consultation with and upon the recommendation of management, on December 4, 2005, after discovery and analysis of the error relating to the calculation of dividends on the Company’s preferred stock as part of the Company's review of its reporting processes. Accreted dividends for the holders of Series C and Series D preferred stock were calculated on a simple interest basis instead of on a compound interest basis. As a result of the error, a total non-cash adjustment of approximately $1.6 million, covering the fiscal years 2001 to 2005, and the nine-month period ended September 30, 2005, will be reflected in the Company’s financial statements.
The error will result in an increase in the net loss attributable to Class A common stockholders and net loss per share attributable to Class A common stockholders for the respective periods. However, the error does not change the Company’s previously reported revenue, operating income (loss), net loss, pro forma earnings per share on an as-converted basis, cash or assets for any of the periods in question. The Company does not believe the correction is material to investors for any of the individual periods being restated and the correction will not impact the Company’s results for the fourth fiscal quarter ending December 31, 2005 or any future period.
The effect of the error in each reporting period is shown in the financial statements attached hereto.
The Company will amend its Registration Statement on Form 10 and its Quarterly Reports on Form 10-Q for the quarters ended June 20, 2005 and September 30, 2005 to include the corrected financial statements from this restatement.
Conference Call Details
In conjunction with this announcement, Taleo will host a conference call today at 8:00 am (EST). To access this call, dial 800-289-0529 (domestic) or 913-981-5523 (international). A replay of this conference call will be available through December 13, 2005, at 888-203-1112 (domestic) or 719-457-0820 (international). The replay passcode is 4743361. A live webcast of this conference call will be available on the "Investor Relations" page of the Company's Web site, (www.taleo.com) and a replay will be archived on the Web site as well.
About Taleo Corporation
Taleo Corporation (NASDAQ: TLEO) delivers on demand talent management solutions that enable organizations of all sizes to recruit, assess and manage their workforces for improved business performance. Taleo’s customers use its suite of solutions to improve their talent management processes to reduce the time and costs associated with these processes and to enhance the quality, productivity and satisfaction of their workforces. Taleo currently has more than 340 corporate customers with approximately 500,000 registered users who use our services to fill positions in almost 100 countries.
Forward-looking Statements
This press release contains forward-looking statements. For purposes of the Private Securities Litigation Reform Act of 1995 (the “Act”) Taleo disclaims any intent or obligation to update these forward-looking statements, and claims the protection of the Safe Harbor for forward-looking statements contained in the Act. Actual results may differ materially from those projected in such forward-looking statements. Investors should consult Taleo’s filings with the Securities and Exchange Commission for further information regarding these and other risks of the Company’s business.
Press Contacts:
Krista Canfield
Tel: 415.905.4011
e-mail: kcanfield@horngroup.com