Chairman, CEO quit BOS
"Harsh differences of opinion" arose, the company announced, over how to implement an earlier decision to sell the operations of BOS subsidiary Pacific Information Systems Pacinfo, and the identity of the director who would conduct talks and oversee the process.
The other directors who stepped down are Aharon Dovrat, Moti Weiss and Ariella Zochovitzky.
The key issue at stake was who will lead the sale of U.S.-based Pacinfo, which BOS purchased in May 1998. The four quit after the board decided to replace Weiss, the CEO of BOS and chairman of Pacinfo, with BOS president Israel Gal, who also chaired Pacinfo.Wertheim indicated, the company said, that he resigned because appointing Gal to sell Pacinfo's assets could damage the company's future, in his opinion. Wertheim joined BOS's board in January 2002, replacing Dovrat as the company's chairman. At the time he undertook to buy a million BOS shares through a private placement at $2 per share, but he reneged. That price was 122% above BOS's current share price on the market. The board said it would not enforce the agreement because an enforced placement might hurt the company. Pacinfosystems is a reseller of other manufacturers, such as IBM, Hewlett Packard, Microsoft, and Intel. BOS, which specializes in Voice over Internet Protocol solutions, ended the first quarter of 2002 with revenues of $1.8 million, and a loss of $4.8 million. In the parallel quarter, BOS lost $2.3 million.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV