From the mosr recent Q:

. RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS


On August 4, 2009, the Audit Committee of the Board of Directors of Pericom, following a review by and on the recommendation of the Company’s management, concluded that the Company’s financial statements for the quarters ended September 27, 2008, December 27, 2008 and March 28, 2009 could no longer be relied upon due to accounting errors in the first and second quarters. As a result, the Company has restated the accompanying Condensed Consolidated Financial Statements as of and for the nine months ended March 28, 2009 to correct for these accounting errors:

Correction of an error related to unrealized gains or losses of investments

A previously reported unrealized loss on an investment has been corrected to present it as an other-than-temporary decline in value of investments in the amount of $414,000.

Correction of errors in accounting for inventory


Previously reported inventories net of reserves have been adjusted for an overstatement of reserves for certain leaded parts and oscillator products, thus increasing net inventory by $109,000 with a corresponding decrease in cost of revenues. In addition, previously reported inventories have been adjusted to correct an improperly recorded intercompany transaction, thus reducing inventory by $98,000 with a corresponding decrease in net revenue.


Correction of an error related to misclassification of costs


Previously reported cost of revenues has been adjusted for an understatement of $772,000 related to an error in recording of cost data during the company’s conversion to a new enterprise resource planning software.