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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