New CEO is cleaning up the mess - but is it too late?


Ray Smets is charged with the task of cleaning-up the mess left by the previous CEO Henrik Brill Jensen & CFO Niels Hobolt. Q1 + Q2 2017 apparently showed 20% growth. Now we realize that much of this growth apparently was based on the selling-in of huge volumens based on CONSIGNMENT which means that the customer can return unsold products. How do we know this?? Because they recently announced a write-down of revenue of 20 mill. DKK due to UNSOLD PRODUCTS IN THE CUSTOMER-CHANNEL.

IF YOU KNOW A LITTLE BIT ABOUT ACCOUNTING YOU KNOW THAT THIS SALE SHOULD NEVER HAVE BEEN BOOKED AS REVENUE!!

Napatech now- and then had a running business and a loyal customer-base and everything was going great until these two characters decided it was time to step up the game. Brill Jensen should never have been charged with running a publicly listed company and Hobolt should have been taking evening-classes a Management Accounting 1.01

BRILL JENSEN & NIELS HOBOLT DECIDED TO UNLOAD THEIR STOCK-OPTIONS AT 28 NOK IN THE 1 HALF OF 2017. WHAT DO YOU THINK ABOUT THAT GUYS?

In my opinion this case qualifies for a class-act lawsuit because a lot of investors where lured by managements reporting of 20% growth in Q1 + Q2 2017 AND a guidance of 100 M USD revenue by 2020. The stock price rocketed due these growth figures.

I hope that the "new" chairman Lars Boilesen (start: sept. 2017) and the new CEO can get this ship back in the docks before it sinks. I do think they stand a pretty good chance given the fact that Napatech still has a steady sale of their traditional product base and that their technology is second-to-none. But first they have to slash costs by getting rid of a lot the empty-headed sales crew that the previous management team decided to hire once the coffers were filled at the IPO in 2013

I really hope that Boilesen is doing what's in his powers to steer Napatech out of the mist. Hopefully his not eyeing an opportunity to sell of Napatech to one of Otellos backers at a bargain price.

This is what happens when you leave it up to self-proclaimed leaders with no track-record to run a publicly listed company.

Rockall
05.11.2018 kl 00:29 820

The s(t)inking ship..? :)-

I do think that Napatech will pull through in one form or another. It's a proven fact that their technological competencies are top of the line AND that they have a running, business in their traditional market niche. I do fear that the board is eyeing an opportunity to sell off Napatech to one of Chairman Mr. Boilesens backers. Boilesen and board member Lars Thoresen (who as previously acting chairman of Napatech apparently hired Boilesen to the permanent job) share a common past involvement in Otello (then Opera). But I will give Boilesen the benefit of the doubt despite the fact that he, as CEO of Otello, has publicly stated a STRONG interest in buying Danish software companies in bargain deals. If this happens I do think we might see legal implications. Clearly Brill Jensen & Hobolt should not be allowed to get a free pass for reporting growth figures based on a sale of an insane volume of returnable goods. And simultaneously drain the liquid funds of Napatech by selling stock-options at 28 NOK - a stock price only achieved by the "impressive growth figures".. On a positive note Ray Smets has been awarded 400.000 stock options and I'm quite convinced that he will do whatever is in his powers to stabilize and grow Napatech.. Lets hope nobody is sabotaging him..
hgul
09.11.2018 kl 08:15 641

Thank you for insightful posts! What is your impression after the Q3 report?