Considering the epidemic of CFOs across all industries who in recent years have departed their positions while refusing to sign off on the most recent financials it will be most interesting to learn whether he signed off on this most recent report. It also would be very interesting to hear the back story of David Robinson's departure as co-CEO and Chief Counsel a few years ago and Ed Heinen's departure as CFO prior to McGovern.....
If this news was as bad as it seems there would be much greater volume on the sell side. Having said that, it doesn't look very good on the surface. There must be something going on internally that may, or may not, have anything to do with Glowpoints overall operation. JMHO.
The 10K states Mr. McGovern is not entitled to receive any severance payments and all restricted stock previously granted to Mr. McGovern will be forfeited to the Company. So for once in the revolving door of management at this company, the shareholders aren't on the hook.
I think the bad news is that the CFO of the company doesn't see any reason to stay. Perhaps he is ashamed of having to dress up revenue results by reporting 20% growth on half of revenue while ignoring the 15 to 20% decrease in the other half of the revenue stream. This has not fooled anyone, just look at the institutional investment in this company.
Bottom line: this company has always under performed their forecasts. Given their guidance to the Maxim Group and the recent price action, I suspect first quarter revenue growth will not be 20% on the half of their income stream that is supposed to be growing.
Wouldn't it be nice if shareholders received a positive surprise from this company, just once?