ITEM 4.02 Non-Reliance on Previously Issued Financial Statements or Related
Audit Report or Completed Interim Review.
On August 14, 2008, DRI Corporation filed its quarterly report on Form 10-Q for the period ended June 30, 2008 (the "Quarterly Report") with the Securities and Exchange Commission. On March 26, 2009 and as part of our year-end closing process and related audit, our management, in consultation with our audit committee, concluded that the financial statements issued in the June 30, 2008 Quarterly Report should no longer be relied upon because a portion of the revenue recognized on a multiple deliverable project in the second quarter of 2008 should have been deferred and recognized in the fourth quarter of 2008. Certain costs related to this revenue that were recognized in the second quarter should have been deferred to the fourth quarter as well. We were unaware of this information when we filed the Quarterly Report and, although there was no effect on our consolidated statements of operations for the year ended December 31, 2008, these changes affect our consolidated statements of operations for the three and six months ended June 30, 2008. Accordingly, to reflect this adjustment in the statements of operations for the three and six month periods, we will be filing an Amendment No. 1 to our Quarterly Report. The adjustment lowers our operating income and net income applicable to common shareholders for the three and six months ended June 30, 2008 by $209,000 and decreases our net income per diluted share by $.02 and $.02 for the three and six months ended June 30, 2008, respectively.
Our management and the audit committee have discussed the matters disclosed in this Current Report with our independent auditors.

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