More problems lie ahead for the Fairfield, New Jersey-based company, and it said it will delay its quarterly filing with the SEC and it has decided to hire outside counsel to conduct an independent review of the valuation of long-term contracts.
Earlier this month CEO Issac Gaon quit the company along with independent board member Mark Berenblut. Gaon is to be replaced by Raul Pupo. The company then said it retracted its previously announced earnings estimates and instead expected a net loss for the second quarter of fiscal 2004 as well as an overall net loss for fiscal 2004.
Though it recorded $125m of revenue in its last financial year, Datatec has a stock market value of only $28.3m.
This article is based on material originally produced by ComputerWire.
