Bobby Yazdani, the CEO of cloud-based HR software maker Saba, is in the middle of a giant accounting mess.Today, Saba announced that it was going to restate at least three years worth of financial results—maybe five years.
The issue mostly came from work done by the company’s subsidiary in India, it said.
One international transaction, with a value of $271,000, wasn’t recorded correctly, and Saba will have to change the timing of when it reported that income.
Saba says that that fixing the mistake won’t materially change the overall revenues it’s recognises or its cash flow. But it isn’t able to report financial results for its third quarter that ended February 29, or the fiscal year that May 31.
Another headache: It’s had to get approval from its bank, Wells Fargo. Banks typically require that corporate borrowers stay current on their filings—which Saba hasn’t been able to do amid the restatement mess.
Yazdani, is a well-known angel investor in companies like Dropbox, Uber, Klout, Sociocast, HotPrints, Qwiki, CleverSense, and Getaround. (Yahoo CEO Marissa Mayer and Google chairman Eric Schmidt have also backed Getaround, a ride-sharing service.)
And Saba competes in a super hot market. Two of its competitors competitors have been bought for billions: SAP bought SuccessFactors for $3.4 billion. Oracle bought Taleo for $1.9 billion. And Workday is about to debut in one of the most talked about enterprise IPOs of the year.
Saba’s far older—it went public in 2000.