Oracle ERP project woes force construction firm to delay financial filing

The company's annual report couldn't be finished without 'unreasonable effort or expense'

Problems with the rollout of an Oracle JD Edwards ERP (enterprise resource planning) system have forced a Pennsylvania construction company to delay the filing of its fiscal 2012 annual report with the U.S. Securities and Exchange Commission.

New Enterprise Stone & Lime Co. said late Wednesday that the system, which went live in certain locations and capacities on Jan. 1, "will enhance its operations and strengthen its internal controls over financial reporting."

However, "unexpected delays and other issues," primarily with system interfaces and operational and financial reports, have made it impossible to collect all the information needed for the annual report, according to a statement.

New Enterprise "has engaged substantial external resources and accounting staff in intensive quality control and review of the new ERP," a process that has also impacted its ability to finish the report "without unreasonable effort or expense," the statement added.

Because of the problems, the ERP implementation has been "tentatively rescheduled" for the first quarter of New Enterprise's fiscal 2014, according to the statement.

Meanwhile, the company expects to complete the fiscal 2012 report by July 15, but said "there can be no assurances" further delays won't occur, according to the statement.

Despite the system issues, New Enterprise's "current projects, material and product shipments, and customer experience have not been materially impacted," the company said.

New Enterprise is implementing JD Edwards Enterprise One, company president Paul Detwiler III said in a brief phone interview on Thursday. Prior to this, the company had used custom-written software, according to Detwiler, who declined further comment.

An Oracle spokeswoman didn't respond to a request for comment. It wasn't immediately clear what system integrator New Enterprise is using on the project.

The company reported US$215.3 million in revenue for the third quarter of its fiscal 2012 ended Nov. 30.

For now, however, the company has apparently so far avoided the sort of financial impact felt by other companies with troubled ERP implementations, which include Lumber Liquidators and Ingram Micro.

One expert on IT project failures made an educated guess on Thursday as to what went wrong at New Enterprise.

"It sounds to me that they implemented the ERP system and now they're having trouble getting out accurate data, which they need to do their closings," said Michael Krigsman, CEO of consulting firm Asuret, which advises companies on how to conduct successful IT projects. "They may have not sufficiently tested the interfaces to existing systems prior to going live."

"Many companies take shortcuts with testing, then discover a problem and only subsequently invest the time and resources needed to test sufficiently," Krigsman added. "To do a proper test is a project in and of itself."

Krigsman also questioned New Enterprise's contention that the system issues have had no material impact. "When an IT failure impacts a company's revenue or ability to make SEC filings, clearly the situation is severe."

Chris Kanaracus covers enterprise software and general technology breaking news for The IDG News Service. Chris's e-mail address is

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Chris Kanaracus

IDG News Service
Show Comments


Brother MFC-L3745CDW Colour Laser Multifunction

Learn more >



Sony WH-1000XM4 Wireless Noise Cancelling Headphones

Learn more >


Back To Business Guide

Click for more ›

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers


This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang


It really doesn’t get more “gaming laptop” than this.

Jack Jeffries


As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr


The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?