Vitesse Reveals More Options Troubles

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Vitesse Semiconductor Corp. said late Tuesday that an internal review by the company found that former executives manipulated financial information in addition to illegally issuing stock option grants.


The Camarillo-based microchip and semiconductor maker revealed that the review by two independent directors found evidence of false sales invoices and improper accounts related to revenue recognition and inventory dating back to 1995.


Vitesse is one of close to 200 companies being investigated by the Securities and Exchange Commission for issuing illegally backdated stock options to executives.


In late April, Vitesse put three of its senior executives on leave, saying the decision was related to the “integrity of documents” involving its stock-option program. All were fired less than a month later. The company then released a statement saying its board discovered additional accounting issues that called into question more than three years of financial results. Its next quarterly report was delayed as a result. The company then fired its auditors, KPMG International, for what it said was the accounting firm’s “lack of independence,” then immediately hired a turnaround firm.


The company’s stock was then de-listed from Nasdaq in June because of the company didn’t file its quarterly report on time. Vitesse has yet to file its annual report with the SEC for the year ended Sept. 30 and said it does not know when it will file it.

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