Wednesday, May 17, 2006
Vitesse Faces Delisting, Other Woes
Camarillo-based Vitesse announced Tuesday that the company's stock is subject to delisting from the Nasdaq. The company, which is listed as VTSS on the market, said that it has received a Nasdaq Staff Determination and is subject to delisting. The firm also said this morning that it has fired CEO Louis R. Tomasetta, CFO Yatin Mody, and EVP Eugene F. Hovanec. The firm's new CEO is Christopher R. Gardner, and CFO is Shawn C. A. Hassel. The company also gave an update on its finances, saying its investigation has expanded beyond the initial issues over stock option accounting to general revenue recognition and cash accounting. Adding to the company's woes, Vitesse said today that it has received notice from Silicon Valley Bank that Events of Default have occurred on its credit facility, which means the firm will have to pay default interest and no further advances will be made under the firm's credit line. Because of this, the firm has engaged an investment bank to find additional financing.