Reuters: Regulatory News: UPDATE 1-Saba Software says CEO to step down, names new auditor

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UPDATE 1-Saba Software says CEO to step down, names new auditor Mar 1st 2013, 16:34 Fri Mar 1, 2013 11:34am EST * Names COO Shawn Farshchi as interim CEO * Says to make required SEC filings "as soon as practicable" * Says Wells Fargo gave more time to meet terms of credit agreement By Sruthi Ramakrishnan March 1 (Reuters) - Saba Software said founder and Chief Executive Bobby Yazdani stepped down on Friday, as the enterprise software provider prepares to restate results for the quarter ended Feb. 29, 2012. The company also named KPMG LLP as its accounting firm but said it would continue to work with current auditor Ernst & Young LLP to complete the restatement. Saba, which said last March it was reviewing certain international transactions, has not issued quarterly results since then. The company also said on Friday it had entered into an agreement with Wells Fargo Bank to extend the deadline until March 31 for it to meet certain terms of a credit agreement related to the delayed regulatory filings. Shares of Saba were up 2.7 percent at $8.98 in morning trade on the Nasdaq. The shares could be rallying on the possibility of the company exploring strategic alternatives, Lake Street Capital Markets analyst Eric Martinuzzi said. "When people are frustrated with the CEO's performance and he resigns or is dismissed by the board, in many cases investors look at it as whoever replaces him would be an improvement. It could be a bit of a relief rally," he told Reuters. The company also said it would make the required SEC filings "as soon as practicable". Saba, founded by Yazdani in 1997, named Chief Operating Officer Shawn Farshchi as interim CEO. "On the surface he's resigning, but you just don't see a Chairman-CEO step down without prior notification. It doesn't take a genius to realize the board is exercising its prerogative here," Martinuzzi said. The company has had five chief financial officers since 1997, with the latest staying for just about a year until December. The company currently has an interim chief financial officer. Yazdani's exit casts a doubt whether there was an issue with the performance of past CFOs or with the CEO's judgment of their performance, Martinuzzi said. Link this Share this Digg this Email Reprints

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