Trouble-plagued mobile phone technology company Plus SMS Holdings has sacked a senior manager for gross misconduct and slashed its profit forecast.
In February, the NZAX-listed company said it expected to make $18 million of revenue and break even in the year to March.
However, yesterday it said that
due to issues associated with senior manager Nicolas Barrera Rios: "PLS [Plus SMS] has suffered disruption to business operations, associated costs and specific deferred or lost sales opportunities that were an integral part of the revenue forecast.
"Accordingly, the board has revised its previously announced guidance and now expects earnings of $10 million in consolidated revenues and a loss position of $3 million for the period." Plus SMS said Barrera Rios had been fired.
In the last financial year, the company made a net loss of $11.9 million on revenue of $1.1 million.
Plus SMS - whose operational business, CRE8, is being moved this month from Guernsey to the United States - has completed an internal investigation and started legal action to recover potential damages for lost earnings.
Chief executive and chairman Chris Tiensch said it was an unfortunate situation but the potential for Latin America remained strong.
"PLS is well positioned to take advantage of these opportunities and leverage existing partnerships with leading mobile operators and corporations such as Microsoft and Motorola as previously announced."
Last September, founder Garry Donoghue and chairman Jim Bracknell resigned, the company admitted making incorrect business statements and a Securities Commission inquiry was launched.
Another battle then ensued to force Donoghue to return 85 million shares.
Tiensch, who was appointed chief executive in June last year, has overseen acquisitions in South America and a shift of focus from enabling global text message campaigns to the manufacture and distribution of mobile phone content.
Shares that had once traded as high as 82c closed down 0.9c yesterday at 8c.
