Ariba Says SEC Is Looking Into Its Accounting

Ariba Inc. said Thursday that the Securities and Exchange Commission has begun an informal inquiry into the software maker’s accounting after the firm said last week that it would restate earnings for 10 quarters.

The company has said it failed to record some payments and stock options as expenses.

Ariba said Chairman Keith Krach paid $1.2 million for chartered flights by former Chief Executive Larry Mueller from September 2000 to July 2001, but the company failed to book a $10-million payment from Krach to Mueller in 2001 as an expense. It said last month that it would restate its fiscal 2001 loss.

Last week, Ariba said it would restate results for the quarters ended March 31, 2000, through the quarter ended June 30, 2002.

The Sunnyvale, Calif.-based firm said its fiscal first-quarter net loss narrowed to $55.9 million, or 21 cents a share, from $157.7 million, or 62 cents, a year earlier. Sales in the quarter ended Dec. 31 rose to $62 million from $55.3 million.

In the current quarter, Ariba said it expected sales of $56 million to $60 million and earnings of 16 to 18 cents a share.

Ariba shares rose 15 cents to $2.80 on Thursday on Nasdaq.