Friday, April 24, 2020

Womp Womp

That crashing sound is the noise from Ingenta's share price falling through the floor.  

When I joined Publishing Technology – now Ingenta plc – it became abundantly clear that I could face a fraud charge if I signed off on the annual financials. Prior year revenues (reported by prior management) were based on a project completion basis and completely divorced from reality. At my direction, we restated and reduced prior year revenues by almost 25%. This financial issue was only one of a catastrophic set of issues and poor management problems – including the real risk of bankruptcy – the company faced. At one point the company floated the idea with trade publishers about launching an Amazon competitor while implementation projects with some of those same publishers were left unfinished. I could not shut that down fast enough. Then there was the joint venture in Beijing which became a time consuming and ridiculous side show which lacked any cohesive strategy or hope of benefit to the core business. No one spoke English making it impossible to share knowledge and project tasks. After almost three years teetering on the edge of bankruptcy, I not only completed a refinancing of the business but had begun a significant reorganization by combining staff teams, sourcing cheaper off-shore staff and defining an achievable market strategy. Only weeks after raising 25% more cash in our public offering than expected the board decided to go in a different direction: Seeing this share chart I am confident my way was better.

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