Bisys Group Inc. said it will delay reporting results for its fiscal fourth quarter, which ended June 30, while it restates past earnings.
In the same press release, issued late Monday, the New York financial outsourcer announced the resignation of James L. Fox, its chief financial officer since 2003, and the hiring of Bruce D. Dalziel to succeed him.
Mr. Dalziel was the CFO of the Internet marketer DoubleClick Inc. Earlier he worked more than 14 years at Prudential Financial Inc. in jobs including CFO of its international insurance division and corporate vice president of planning and analysis.
Mr. Fox will stay with the company during a transition period.
Bisys said July 25 that it would restate its last three years of earnings to change its handling of fees paid to it by mutual funds. The company said that it was negotiating with the Securities and Exchange Committee to settle an inquiry into the fund-fee matter and the restatement.
Russell P. Fradin, Bisys' president and chief executive, said in a conference call Tuesday that it expects the settlement and related costs of the fund inquiry to total $25 million.
Mr. Fradin said fourth-quarter results were in line with expectations. However, he said, corporate expenses "continued at an elevated level" as a result of the SEC investigation and its accounting.
Operating expenses were up $11 million in the quarter, he said. Full-year operating expenses were up $20 million.
The company still has not filed its fiscal third-quarter 2005 results because of the SEC inquiry.
It is restating results for the second time in two years.
