Hi Everyone,
For what it’s worth, I contacted the company to ask if more detail could be provided about Dirk’s departure. The response I got went along these lines (this is my summation – not verbatim):
The company can not and will not discuss the circumstances surrounding Dirk’s departure since, as with any normal employment contract for people in senior management positions, there are confidentiality clauses in place. The information provided in the press release is all that can and will be said.
The information provided at the EGM regarding company strategy and the company’s financial position remains accurate and there is no cause for concern that something untoward has happened with either existing or potential future clients. The company remains in a strong financial position with plenty of cash at hand.
The company is very aware that the only information that really matters to investors and the market, and that will see sustained long-term increases in share price, is improving numbers in financial reporting. Therefore, the new board has decided that communications going forward will centre around 4Cs, half- and full-year reports, and announcements when significant developments occur. Newsletters and the like won’t be provided regularly going forwards. This is essentially because newsletters and webcasts were simply feeding speculation and / or actually having a negative impact on share price. (Note that the company has made this clear previously). The attitude seems to be that if you haven’t got something worthy of a formal announcement then it is better not to try to manufacture a newsletter that might be misinterpreted. The company is aware that less regular “news” may cause investors who were used to the old ways some concern in the short term, but it is normal business practice and a safer and more conservative approach to communications going forward. It’s not that no news means bad news, it’s that no news means business as normal and significant new developments will come through formal announcements.
The focus now is on cost control, increasing sales and developing the “Cornerstone” opportunities, and achieving profitability.
The board won’t be rushed into finding a new permanent CEO – it will take a considered approach. Bob is seen as a good person to lead the company through this period as he knows the products better than anyone, has worked closely with clients deploying our products, is well respected by both current clients and potential future clients, is well spoken and passionate about the company, and his team are highly capable and can continue product development under Bob’s leadership.
I also understood that Sue will be in Greer in the near future.
I suggest that anyone who is concerned contacts the company for themselves and you will find they are responsive.
Best wishes,
Alhotcop9
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