Vitesse Throws More Doubt on Financials

Vitesse Semiconductor Corp. said its financial statements from September 2002 through the end of 2005 “should not be relied upon.” The Camarillo-based designer of semiconductors for communications networks also said portions of its annual report for the year ending Sept. 30, 2005, including the report of its independent auditor, KPMG, were unreliable.

The disclosure was the third in eight days related to an internal investigation into stock-option grants. Vitesse put Chief Executive Louis R. Tomasetta and two other top managers on leave April 18. It said April 20 that it wouldn’t file its quarterly report on time. The company said Shawn C.A. Hassel, a managing director with consulting firm Alvarez & Marsal, had been named acting chief financial officer.