HPL sacks CEO; combs through books - The Antenna - HPL Technologies - Brief Article

Electronic News, July 22, 2002

HPL TECHNOLOGIES INC. STUNNED THE CHIP DESIGN AND manufacturing worlds as well as many investors when it reported that its audit committee has initiated an investigation into financial and accounting irregularities. The yield optimization company said in a statement that, based on its preliminary investigation, "a material amount of revenue was improperly recognized during one or more earlier periods in connection with sales to an international distributor."

Sources tell us the company is a unit of Canon of Japan, where HPL had significant business with Toshiba and Fujitsu. It's unlikely, though, that the fault lies anywhere other than inside HPL, sources said.

Chairman and CEO David Lepejian has been removed from all positions at HPL, the company said. Elie Antoun, president and CEO of MediaQ Inc., has been elected chairman and will act as interim CEO. At the same time, Michael Scarpelli, HPL's VP of corporate development, has been named CFO and VP of administration.

For the complete story, please visit our Web site at www.electronicnews.com