Riverstone overstates 2002, 2003 revenue

Riverstone Networks says it overstated fiscal 2002 and 2003 revenue by US$98.8 million. An ongoing internal audit turned up the discrepancies, which initially found that the two fiscal years were overstated by $51.5 million. The internal review was prompted by requests for information and then the launch of a formal investigation into Riverstone's accounting practices by the US Securities and Exchange Commission.

Separately, Riverstone has named former Nortel's Enterprise Networks chief Oscar Rodriguez as its president and CEO, succeeding acting CEO Romulus Pereira. Pereira will continue to serve as Riverstone's chairman.