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My letter to LaRosa (copy to Rogas)

1 Votes
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If I get a response, I'll be shocked. But like Colin, it made me feel better.

Dear Mr. LaRosa:

Congratulations on your recent appointment to the Vitesse Board of Directors. I might also add, welcome to this “house of horrors” from an investment standpoint. Those of us who have been invested in this company for more than the last 4.5 years have endured quite a nightmare. As an example, we have witnessed under the current management team:

•Sales plummet from $60M/quarter to the latest quarter totals of $37M

•A horrendous re-finance resulting in massive shareholder dilution

•A long, troubling and consistent pattern of missed, self-imposed deadlines, to the point of being comically predictable

•Management rewarding themselves with nice salaries, perks and bonuses while goals and deadlines are missed

•The CEO, Mr. Gardner hiring his live-in paralegal girlfriend as a “legal consultant” for more than six figures

•A poorly timed 1 for 20 reduction that has already resulted in a 35% decline in value

•After 4.5 years, still not re-listed

•After 4.5 years, CFO still talking about how to remediate material deficiencies in their accounting practices

•Little or no communication from management to the shareholders

•After 4.5 years, a 15 minute shareholder meeting that was rushed through

•Last but not least, a share price that is now about .16/share on a pre-split adjusted basis

So as you might imagine, there is extreme frustration on the part of the investors. We feel that senior management has been weak at best in performing their duties, while being handsomely rewarded ( to the point of the CEO including his live-in girlfriend in on the fun, a major mistake in judgement in our opinion). I’m sure there are many good employees at Vitesse. After 4.5 years, Mr. Gardner and Yonker have not shown that they are up to the task of leading this company, its employees or providing a return for the shareholders. We are hoping that you along with the other two newer board members will live up to your primary role of protecting shareholder interests, a role that appears to us to have been ignored to this point for reasons that we still cannot comprehend. We look forward to your contribution to turning this company around.


Posted by sharpinvestments - 16 years ago


0 Votes

Thanks Sharp. If enough of us voice our dissatisfaction to the BOD Maybe(?) we will see some changes.

Posted by christ3opher - 16 years ago

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Hopefully he will take our letters to heart and not allow the clowns around him(g&y) to kill his spirit.

Posted by GARIF - 16 years ago

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Excellent letter Sharp; direct and to the point. Who knows, if he receives enough of these it might make him look at things from a different angle? I'd like to get these letters to all of the BOD. Great job.

Posted by Colin - 16 years ago

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' the point of being comically predictable...'

That made me laugh out loud....even though I don't find much humor with Vitesse. I was thinking about the engineering groups at Vitesse. Each and everyone of them knows that if they sucked at their jobs and made the same continuing screw ups that the accounting department under RY makes their asses would be fired....a long time ago. Do not pass Go, Do not collect $200..... Yet every day they go to work and see RY and the rest of the accounting people at the job and getting paid...... accountabilty for me, but not for thee....

not exactly a morale booster for employees who still may think CRG really wants to get Vitesse re-listed again.

Steve Hanson's email was at one point

(Colin, you sent to me last year from a Willow Shire email)

Grant Lyon is founder of Odyssey Capital

(as a somewhat pointless aside.....I would ask these new BOD members to protect ALL shareholders interests. I already know they are appointed to protect the bondholders interests)

Posted by altrfan - 16 years ago | Updated 16 years ago

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I'll add my voice to the accolades to you, Sharp. I agree with others that the BOD needs to step up as they are becoming a part of the problems instead of the solution. Bravo!

Posted by Grandpubha - 16 years ago

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Great post Sharp, here is one more question:

What justifies CRG's salary where the competitor's ceo (AMCC) with 10 times the market cap and a PHD earns less than this charlatan?

Christopher Gardner , 49
Chief Exec. Officer, Pres 565.00K 0.00
I'm not including CRG's private escort service's income!
Market Cap: 71.96M

Dr. Paramesh Gopi Ph.D., 41
Chief Exec. Officer, Pres 365.00K 0.00
Market Cap: 753.64M

Posted by scam_artist_ceo - 16 years ago

0 Votes

what justifies this is Gardner's ability to have picked a group of BOD members who obviously agreed with whatever he wants them to do.

Until now the BOD has done nothing in benefiting the shareholder. Amazing how the 2 bondholder picks have not done much either. Gardner and crew must have spread it on real thick with the new product list and what is going to supposedly happen instead of being realistic on what most likely will happen.

The most recent member to be added to the BOD will hopefully bring some change to all of this. I did note that LaRosas initial news announcement welcoming him to the team had a sentence that is no longer in the statement any longer. The sentence was "Mr. LaRosa has been a long time advocate for shareholders"
This sentence has since been removed from those news items.

Mr. Rogas, i feel is the biggest detriment to the shareholder. I have written him a number of times about the many managements flaws and have never received any responses ever.
I am sure that he is wrapped tightly around Gardners finger nodding up and down like a bobble-head to whatever Gardner wishes him to do.

To read the long list of managements screw-ups which has resulted in the overall collapse of market share should have been noticed a long time ago by the BOD and obviously was not.
Like i stated before, hopefully change is on the way.

Posted by christ3opher - 16 years ago

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