Vitesse Cuts It Close
"We are still targeting a March completion date but informing you we have no remaining safety margin in the schedule," CFO Rich Yonker said on yesterday's update call for investors.
Vitesse's primary goal is to get out of the pink sheets and back onto a proper exchange like Nasdaq. The company hasn't reported earnings for several quarters due to the stock-options backdating scandal, which for Vitesse erupted in May 2006 with the firing of executives including the CEO. (See Vitesse Execs Get the Axe and Chapman Chides Vitesse, Again.) In addition to getting its 2006 and 2007 financials in order, Vitesse has to reconstruct 2005 in order to keep the Securities and Exchange Commission (SEC) happy.
In the absence of full financials, Vitesse is reporting "consumption," a measure of goods sold to end customers. That clocked in at $54.9 million during the first quarter, which ended in December -- that's down from the previous quarter's $60.9 million, partly because Vitesse sold off some storage products to Maxim Integrated Products Inc. (Nasdaq: MXIM). (See Vitesse Unloads Storage Biz.)
(The products sold to Maxim accounted for $20 million in consumption for the year ended June 30, Vitesse previously reported.)
Vitesse shares are down 11 cents (12.2%) at 79 cents midday.
— Craig Matsumoto, West Coast Editor, Light Reading