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Vitesse Cashiers CEO

TSC Staff

The Camarillo, Calif., company said CEO Louis Tomasetta and two other top execs were terminated as an internal probe of possible option backdating was expanded to cover general revenue recognition issues and quarter-end cash reporting. Shares fell 26%.

The company got a default notice from its lender but is in forbearance talks. Vitesse said it hired an investment bank to raise more scratch and has received some expressions of interest.

Vitesse, whose shares have lost more than half their value since the backdating question arose earlier this spring, named its acting chief, Christopher Gardner, as CEO. The company also named its interim finance chief, Shawn Hassel, chief financial officer. Hassel is from turnaround specialist Alvarez & Marsal.

Vitesse put Tomasetta and two other execs, CFO Yatin Mody and Executive VP Eugene Hovanec, on administrative leave last month after the company began investigating possible irregularities in its options program.

"In spite of the recent challenges we face with respect to our financial reporting and other issues, Vitesse remains focused on executing our strategic business plan to capitalize on the investments we've made," Gardner said. "I'm pleased that we continue to see broad-based growth in customer demand across our three business units and I'm encouraged by the ongoing support shown by our employees, suppliers and customers."

Vitesse fell 48 cents early Wednesday to $1.37.