News > Technology
Veritas CFO out on false resume
Software company says CFO lied about Stanford MBA; reaffirms 3Q earnings and revenue guidance.
October 3, 2002: 2:40 PM EDT

NEW YORK (CNN/Money) - Veritas Software Corp. said Thursday its chief financial officer is leaving the company after it was discovered he had padded his academic credentials.

The company said Kenneth Lonchar had claimed he had a Masters of Business Administration from Stanford University. A company spokeswoman said that he did not hold an MBA from any school.

The company reaffirmed its earlier revenue and earnings guidance, saying it expects third-quarter revenue of $350 million-to-$370 million and earnings per share of 11-to-13 cents excluding special items. Analysts surveyed by earnings tracker First Call have a consensus EPS forecast of 13 cents and revenue of $358.8 million.

Still, shares of Veritas (VRTS: down $2.50 to $12.00, Research, Estimates) lost nearly 15 percent in morning trading Thursday following the announcement.

"While Ken's misstatement about his academic credentials is unfortunate, it has no bearing on the accuracy of our financial results or the quality of our financial procedures and controls," CEO Gary Bloom said.

The company, a maker of data storage and backup software whose name ironically means "truth" in Latin, praised Lonchar's work and said it was saddened by the circumstances of his departure.

It quoted Lonchar as saying, "I regret this misstatement of my educational background. Under the circumstances, I believe my resignation is in the best interests of both the company and myself." Lonchar was not available for comment Thursday.

The company named Jay Jones, its chief administrative officer, as interim CFO and said it expects to fill the job on a permanent basis by the end of the year.

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Lonchar received salary and bonuses worth $615,000 in 2001, according to the company's most recent proxy statement, and stock options worth another $325,000. In the last three years, his salary and bonuses totaled $1.67 million, while his stock options were worth another $637,500.

Insider trading reports from the company say he anticipated getting proceeds of another $8.75 million on the sale of 120,000 shares of the company's stock during the last two years.  Top of page

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