Veritas expects to pay $30m penalty

SAN FRANCISCO: Data management software maker Veritas Software Corp. said on Monday it expects to pay a penalty of about $30 million stemming from a previously disclosed U.S. probe over "certain transactions" in 2000 with Time Warner Inc. unit AOL and other parties.

Veritas, in a filing with the U.S. Securities and Exchange Commission, said its estimate of the penalty was based on recent communications with SEC staff. Veritas said it expects the penalty to be recorded as a subsequent adjustment to its first-quarter financial results announced last week.

The SEC probe was also associated with a review of accounting matters related to Veritas' 2001 through 2003 financial statements.

Veritas, whose stock edged higher after hours, said the financial statements affected by the review had been previously restated and that no further restatement is expected in connection with a possible settlement with the SEC.

Veritas, based in Mountain View, California, said it does not expect a settlement of the matters to have any effect on its pending merger with Symantec Corp., the world's biggest security software maker.

Symantec's acquisition, valued at $13.5 billion when it was announced last December, is expected to close in the second quarter.

Veritas said other terms and conditions of the settlement will be disclosed once a final agreement is reached.

Final settlement is subject to agreement on final documentation, approval by Veritas' board of directors and approval by SEC commissioners, Veritas said.

Veritas shares traded after hours at $20.39, after closing down 4.4 percent at $20.34 on Nasdaq.