BlackBerry maker Research in Motion (RIM) (Quote) said it is undergoing an executive-level restructuring on the news it will restate $250 million for fiscal year 2004, 2005, 2006 and part of 2007.
Although a special committee found no intentional misconduct by RIM directors or officers, an internal review pointed to accounting errors and a process marked by informality and lack of documentation, the company said.
RIM officials said it missed the March 3 deadline for filing restated financial reports with the Securities and Exchange Commission (SEC). The company will file “as soon as practical” after finishing its accounting review, RIM said in a statement.
The company said it will split the roles of chairman and CEO; Jim Balsillie resigned as chairman but will remain co-CEO with Michael Lazaridis. The two also gave RIM $5 million to help offset the restatement cost.
Two directors on RIM’s compensation committee said they won’t stand for re-election. RIM also moved CFO Dennis Kavelman to COO and expanded the board from seven to nine members.
“We are treating this issue very seriously and have already made significant progress in rectifying this matter,” Balsillie and Lazaridis said in a joint statement. RIM was not immediately available for comment.