Quest Software Inc. reported disappointing revenue for the second quarter and withheld its earnings result as it investigates its stock option grant accounting.
The Aliso Viejo-based software maker posted revenue of $126.9 million for the quarter, up 18.5% from the year-ago quarter but shy of analysts’ estimates of $130.1 million.
In the current quarter, Quest said it expects revenue of $128 million to $135 million. The company said annual sales should be $535 million to $545 million.
Analysts were expecting revenue of $135.1 million in the third quarter and revenue of $548.8 million for the year.
Shares of the company fell 8% in afterhours trading.
Quest said early last month that it planned to restate results from 2000 through the first quarter of this year as part of its ongoing look at stock option grants.
A special committee looking into Quest’s options found that stock compensation expenses should have been recorded for option grants and recognized over the vesting period of the options.
The additional expense “will be significant,” Quest has said.
In its quarterly announcement, Quest said it did not expect to be in a position to announce more financial results until the committee has finished the investigation and finalized accounting adjustments and restated financial statements.
Also, the company said it would need to file appropriate documents with the Securities and Exchange Commission.
In early June, Quest said it received an informal SEC inquiry about past stock option grants.
