Potential sale as KIT digital restates financials
November 26, 2012 09.00 Europe/London By Julian Clover
KIT plans to restate its quarterly and annual financial statements issued between 2009 and 2011. The two quarters published so far this year will also be restated and the company has delayed the publication of the quarter ending September 30, 2012.
In a statement, Kit said the irregularities related to “perpetual software license agreements” put in place by the previous management team. They were discovered as part of an investigation by the company’s Audit Committee.
In September KIT digital has announced it was making “significant workforce reductions” as part of a $40 million (€30.5 million) cost saving programme.
The action follows the appointment of activist investor Peter Heiland as interim CEO.