Vitesse has said its review of its books turned up not only backdating, but various other accounting irregularities such as false sales invoices, complicating the job and requiring Vitesse to painstakingly "reconstruct" its past revenue with customers. A disagreement with its first auditor KPMG, which Vitesse fired from the job in 2006, has not helped.
Meanwhile, Vitesse's stock continues to languish in sub-$1 territory, having slid roughly 60% in the past two years.
Last month, during a "state of the company" conference call that Vitesse held in lieu of a quarterly earnings report, one participant summed up the Street's attitude, by suggesting that CEO Christopher Gardner consider resigning.
"I think I speak for a large percentage of the owners of Vitesse in saying that you get an A plus grade for politicking, and fooling all of us, but an F for increasing shareholder value," said Piney Reach analyst Robert Jordan. "Good luck to all of us for leaving the Company in your hands a day longer than necessary."