RESTATEMENT OF FINANCIAL STATEMENTS

3 Months Ended

Jun. 30, 2012

RESTATEMENT OF FINANCIAL STATEMENTS [Abstract]

RESTATEMENT OF FINANCIAL STATEMENTS

2.    RESTATEMENT OF FINANCIAL STATEMENTS

During the preparation of our financial statements for the fiscal year ended March 31, 2012, we reassessed the presentation of sales of third party software assurance, maintenance and services and, after giving further consideration with respect to gross vs. net reporting, and concluded that these transactions should be presented on a net basis in accordance with Codification Topic, Revenue Recognition, Subtopic Principal Agent Considerations. We determined that we should have been considered an agent in the transaction because a third party is responsible for the day to day provision of services under the contract. This change in the determination of that status results in different accounting treatment of the revenue resulting from the sale of such third party software assurance, maintenance and services, requiring the revenue to be reported net of the associated cost of the underlying contract with the third party service provider.

Under net sales recognition, the cost paid to the third party service provider is recorded as a reduction to sales of products and services, resulting in net sales being equal to the gross profit on the transaction. This change in accounting policy and restatement affects our revenues and offsetting costs and expenses for the identified periods but does not affect our previously reported earnings before provision for income tax, net earnings, net earnings per common share or consolidated statement of cash flows.

The effects of this restatement are a reduction of sales of products and services of $32.6 million for the costs of certain third party maintenance, software and services for the quarter ended June 30, 2011 as presented in the table below (in thousands):

	Quarter Ended June 30,
	2011					2011
	As reported		Adjustments			As restated
Sales of product and services	$	201,966	$	(32,645	)	$	169,321
Total revenues	$	211,544	$	(32,645	)	$	178,899
Cost of sales, product and services	$	173,319	$	(32,645	)	$	140,674
Total costs and expenses	$	205,261	$	(32,645	)	$	172,616
Net earnings	$	3,703	$	-		$	3,703
Net earnings per common share - basic	$	0.45	$	-		$	0.45
Net earnings per common share - diluted	$	0.44	$	-		$	0.44