Newport Beach-based TriZetto Group Inc. said Wednesday that the Securities and Exchange Commission has inquired into its accounting practices.
The SEC has asked TriZetto about how it accounts for revenue from some upfront fees and from outsourcing services it provides. TriZetto sells software and services that help health plan insurers and benefits administrators manage data.
TriZetto said in a regulatory filing that its accounting practices are proper. Even if it were to change how it accounts for some revenue related to the SEC’s inquiry, TriZetto would not feel a “material impact” from a restatement, the company said.
Separately, TriZetto said it plans to sell $100 million worth of convertible debt through a private placement.
TriZetto plans to use proceeds from the debt sale to buy up to 1 million shares, make acquisitions, and for other general corporate purposes.
TriZetto’s shares were down about 4% in afterhours trading to $16.11.
