Saba Software Surges 10% after Results of Internal Accounting Review

Shares of Saba Software SABA are seeing increased strength late during Friday's trading session after the company announced results of an internal accounting review of the company's financials. The Audit Committee identified instances of improper time-recording in the Company's professional services business, in some cases at the direction of supervisors. The Audit Committee also determined that the Company prematurely recorded revenue of $271,000 on an international transaction in the quarter ended November 30, 2010. The Board of Directors has adopted the Committee's findings, and has directed management to conduct additional work to evaluate the potential impact of the findings on the Company's accounting and revenue recognition. The Company is performing its analysis but has not reached a determination about whether a restatement will be required with respect to any of the Company's historical financial results. Until such a determination is made, the Company's historical financial results should not be relied upon. Currently, shares of Saba are trading up over 8% at $9.25 per share.