Cloud-based call recording software company Dubber Corporation [ASX:DUB] fell more than 25% on Monday after restating FY22 revenues and announcing the resignation of CFO, Peter Curigliano.
Late last Friday, Dubber divulged that its service income for FY22 will be revised from $35.7 million to $25.3 million after consultations with its auditor.
Today, the company took further measures, announcing a ‘comprehensive review of all current practices, processes and systems in the company’s finance function’.
The current chief financial officer, Peter Curigliano, has resigned with immediate effect.
The matter was serious enough for Dubber CEO Steve McGovern to contritely relinquish his incentive entitlements for the 2021/22 year.
DUB shares are now down more than 85% year to date.
Source: Trading View
Dubber’s FY22 restatement
Dubber’s delay in finalising its FY22 results, which ended in a revenue restatement, has led to the immediate resignation of CFO Peter Curigliano.
Dubber reported a downgrade in revenue, sinking from $35.67 million reported in August to $25.34 million.
The company put the revenue losses down to a ‘modification in the treatment of platform and foundation-based income’.
Losses before taxation and other such expenses were even higher — $65.52 million increased to $84 million.
This was attributed to debt expenses of $8.16 million resulting from failed customer repayments, and a reversal in recognised revenue (of $10.33 million) with the company deciding it’s unlikely to be collecting owed funds.
Dubber said that Executive Director Peter Pawlowitsch has been appointed as head of financial functions for the time being.
The company expects Pawlowitsch to closely review all the company’s existing processes, practices, and systems under the financial heading.
While there was no detailed explanation for the loss of Mr Curigliano, the company briefly addressed the issue with the statement:
‘Mr Pawlowitsch will also oversee the recruitment of a new CFO. The current chief financial officer will step down from that position with immediate effect and assist the Company in the transition of the role.’
Dubber also advised that McGovern will be looking to ‘relinquish his incentive entitlements for the 2021/22 financial year’, around $250,500.
Despite the significant revision, DUB management ‘does not consider that these changes materially affect the future financial performance or financial position of the Company’.
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