Shares in the Internet of Things enabler bounced back after a tumultuous week for the Group.
Companies: Telit Communications S.p.A.
After requesting a leave of absence last week, Telit Communications (LON: TCM) CEO Oozi Cats has resigned after an independent review found evidence showing that an indictment was issued against him in the US and that this fact was knowingly withheld from advisers. Former Finance Director Yosi Fait will continue as interim Chief Executive Officer.
Shares in the Group are currently trading up over 11%; some relatively good news after lowered forecasts saw more than 40% being wiped off the share price in last Monday’s trading. Shares fell a further 40% fall in Friday's trading when the news of Mr Cats' indictment first came to light.
Clearly riled by the news of an indictment of their CEO of 17 years, the company said this morning:
"It is a source of considerable anger to the Board that the historical indictment against Oozi Cats was never disclosed to them or previous members of the Board and that they have only been made aware of its existence through third parties. The Board is now moving on from this difficult situation and will continue to deliver on its stated strategy under the interim leadership of Yosi Fait."
In the meantime, the Board intends to appoint three additional independent non-executive directors as soon as practicable to reinforce it, one of whom will become Chairman. These directors are expected to be UK based.
The Group says they are now "moving on from this difficult situation" and that they will...
"Continue to deliver on its stated strategy under the interim leadership of Yosi Fait. He will be conducting a preliminary review of the Group's activities and cost base."
Given the fact that Mr Fait has moved from the FD role to become interim CEO it is a little strange that he needs to carry out a preliminary view of the cost base. He should be all over the detail already. Hopefully, this will be the last of the bad news, but reviews of this kind do have a knack of leading to further kitchen sinking for new Management.
