Quest Software Announces Restatement

Aliso Viejo-based Quest Software is the latest company to announce a restatement related to the industrywide stock option grant investigation by the SEC. Quest said this morning that it expects to restate its annual and interim financial statements for the periods from 2000 through 2005 and for the quarter ended March 31, 2006, as a result of its review of its stock option grant practices. The company had earlier announced that it has formed a special committee to investigate its stock option grant practices, and had hired legal counsel and independent forensic accounting consultants to research its practices. Quest is a maker of enterprise IT management software. The firm is one of over 50 high tech companies that are under investigation by the Securities and Exchange Commission over stock option grant practices. Quest is listed on the Nasdaq as QSFT.