The new management of IT&e has discovered its departing executives misled the market on its current financial status, correcting the company's $911,671 profit to a $339,488 loss, and deciding to close or possibly sell off its PC manufacturing and sales division.
IT&e chairman Bob Johnson advised shareholders at the company's annual general meeting late last month of a detailed review of the company's financial position, which has since revealed that "former management did not consistently apply the company's accounting policies" in its September quarter update. This former management included the recently departed CEO Jeremy Jilla, who resigned last month, and CFO Andrew Rettie, who resigned on the day the findings of the review were released.
A company statement released to the Australian Stock Exchange now predicts IT&e will be unable to meet its forecasts for fiscal 2001, but it can still meet its liabilities and fund ongoing operations.
As a result, the company has decided to sell or close down its Microarts division, which manufactures and markets personal computers, by the end of the month.