$KITD
$KITD Over $ 200 million revenues for the year! It's unbelievable how trades at only $ 40 million! No wonder who runs the company wants to buy it! I believe that with proper management the company will one billion dollars in a year! It has contracts with KIT Digital Former Google CEO Offers To Take Co. Private For $ 3.75/shr; Stock Plunges
(RTTNews.com) - KIT digital Inc. 'S (KITD) former Chairman and Chief executive officer Kaleil Isaza Tuzman said Friday that he is prepared to lead a bidding group to buy the company at $ 3.75 per share in cash, which represents an 81 % premium to the closing price of KITD common stock on Wednesday, November 21, 2012. Tuzman said he has reviewed the transaction with two large private equity groups who are interested in participating with him. Tuzman also urged the company to discuss the acquisition offer and conduct open and transparent sale process.
On November 21, 2012, KIT digital announced that, because of errors and irregularities identified by the company in its historical financial statements, the financial statements for (1) the years ended December 31, 2009, 2010 and 2011 and (2) each of the three quarters in 2009, 2010 and 2011 will be restated. As a result of the restatement of these prior periods, the company will also restate the quarters ended March 31, 2012 and June 30, 2012.
The company also had said Wednesday that the accounting errors and irregularities giving rise to the restatement relate primarily to recognition of revenue related to certain perpetual software license agreements entered into by the prior management team in 2010 and 2011.
Tuzman originally resigned from his post as CEO of KITD in March 2012 and subsequently resigned from his role as Chairman in April, 2012.
Tuzman Friday said in a letter that during his tenure at the company, all revenue recognition decisions were made in consultation with and approved by the company's independent accounting firm, and approved by the company's audit committee. Tuzman said he has no reason to believe any of those decisions were improper.
"Since my departure, it is possible that your new audit committee members have elected, in consultation with the firm's outside auditors, to apply different revenue recognition policies. That is not prior management's responsibility, and a change in revenue recognition policies and application may reflect your recently insinuated decision to further separate the "software" and "services" lines of the Company's business, "Tuzman said in the letter.
In Friday's regular trading session, KITD is currently trading at $ 0.74, down $ 1.33 or 64.34%
Read more: http://www.nasdaq.com/symbol/kitd/stream#ixzz2DwdjLgn6
