Vitesse Semiconductor Corp. - a company with accounting chaos inside, but with a business strategy which looks as if growing. Today, we begin our very first series of featured researh reports about the companies, which are on the Pink Sheets.
According to investopedia.com, a Pink Sheet term means that a company does not need to meet minimum requirements or file with the SEC. Pink sheets also refers to OTC trading. The pink sheets got their name because they were actually printed on pink paper.
Vitesse has been demoted to the Pink Sheets because of a big hole regarding their accounting. However, this still can be fixed, if the company will come up with the proper solution to this issue.
Company makes money by selling laser drivers, transimpedance amplifiers for systems manufacturers in the communications and storage industries. and post amplifiers that serve as the physical connection to the fiber optic cable
The question is how Vitesse will perform its strategic divestitures that would allow bend resources to be better concentrated in a certain area.
Consolidation is a key subject for the company, and the communication semiconductor business is in terrible need of it in order to generate incremental shareholder value.
Back in May, company did not produce any of cash flow. This was because of reduced product shipments and a bigger decrease in Accounts Payable [AP] over Accounts Receivable [AR].
Besides, the company pointed out the auditor selection was nearly completed. That the same as saying “For every cockroach you can see there are 50 more hiding behind the wall.”
So far, so good company is trying to correct their accounting mess and get off pink sheets.On Tuesday, company announced that the Audit Committee of its Board of Directors has appointed BDO Seidman, LLP as its new, independent registered public accounting firm.
Rich Yonker, chief financial officer of Vitesse, said, "We are committed to completing the audits of our financial statements in a timely manner and returning to a listing on a national stock exchange. We are delighted to be working with BDO Seidman, a firm which has the resources and expertise to provide highly-reliable auditing services."
Based in Camarillo, California, the company markets its product in the United States, Japan, Canada, Singapore, Hong Kong, and the United Kingdom.
Yesterday, a 23-year-old company has announced it has shipped in excess of 40 million Gigabit Ethernet (GE) PHY ports worldwide, doubling its total shipment number in just under a year.
On the chart above you can see that at one time the stock was priced up for ~$110, but it is doubtable if they managed to sell any of them for this price. Then yet it went significantly down and now it is priced for 1.18 per share.
All in all, we consider this company to be capable to get out of this mess. But by doing this company need to come up with the proper amendments.
One of company's Hot Products Brief
Key Executives of Vitesse Semiconductor (VTSS)
| Name | Age | Position |
| Christopher Gardner | 46 | Chief Exec. Officer and Pres |
| Ira Deyhimy | 66 | Co-founder,VP - Bus. Devel. |
| Louis R. Tomasetta Ph.D. | 59 | Co-founder |
| Michael Rodensky | 47 | VP of Worldwide Sales & Marketing |
| Rich Yonker | 59 | Chief Financial Officer |
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