[Posted on November 6, 2007 - 5:45 PM]
E-mail
del.icio.us
Technorati
Digg
The news Tuesday that Motive Inc. [MOTV.PK] has hired Thomas Weisel Partners to "study strategic alternatives" comes too little too late for the telecommunications software company. Having covered Motive in Austin, Texas, for years, I've cringed as the company made a series of irrational acquisitions and later was tipped into the public market by investors seeking an exit at any cost. Motive went public in June 2004, opening at $10.26 a share and rising to $15 before beginning a decline that has parked the company's shares at $1.70 as of market close on Tuesday.Motive executives exacerbated things in recent years by pushing the company's accounting and revenue-recognition practices to the limit, and beyond. For details on these infractions, check out the summary of a report filed with the U.S. Securities and Exchange Commission by an independent team of lawyers and accountants on behalf of Motive.
The company has since restated four years of earnings and cleaned house, replacing the execs responsible for the accounting restatements. Still, much of the shenanigans occurred while the company was ostensibly for sale. According to the internal probe, Motive was considering selling itself even during the period when it was inflating its revenues. And even then it couldn't find a buyer. It might stand a better chance of inking a deal now that its shares have plunged, but I wouldn't count on it. - Stacey Higginbotham
See Nov. 6 Motive press release via Yahoo!
Summary of the independent investigation into Motive
