In brief: Riverstone admits overstating revenue

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• Riverstone Networks says it overstated fiscal 2002 and 2003 revenue by $98.8 million. An ongoing internal audit turned up the discrepancies, which initially found that the two fiscal years were overstated by $51.5 million. The internal review was prompted by requests for information and then the launch of a formal investigation into Riverstone's accounting practices by the Securities and Exchange Commission. Separately, Riverstone has named former Nortel's Enterprise Networks chief Oscar Rodriguez as its president and CEO, succeeding acting CEO Romulus Pereira. Pereira will continue to serve as Riverstone's chairman.
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• MCI, legally known as WorldCom, announced late last month that it is appointing five new members to its board of directors. The appointments will become official when the carrier emerges from bankruptcy protection. W. Grant Gregory former chairman at Touche Ross, Judith Haberkorn retired executive from Bell Atlantic, Laurence Harris from Patton Boggs, Eric Holder former U.S. Deputy Attorney General, and David Matlin CEO at MatlinPatterson Global Advisers will join the four current members of the board. MCI says that as many as three others might be appointed to the board of directors. The company also is planning to appoint a chairman of the board, which it says will be one of its "first orders of business," post-bankruptcy. Currently Michael Capellas, CEO, also holds the title of chairman.

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