Accounting firm for Proxim Wireless quits

Proxim Wireless reported in a filing today that it was “advised” last Friday by its accountants, Fitzgerald, Snyder & Co., that it was resigning. The reason? It seems that the “engagement” partner at the firm who handles Proxim’s account, is leaving. Proxim also announced that it hired a new accounting firm, Mark Bailey & Co., with which, Proxim says neither it nor anyone on its behalf consulted over the last two-and-a-half years.

We wondered whether the person who had previously taken care of Proxim’s account at Fitzgerald, Snyder & Co., had perhaps moved to the new firm as well. But no. The partner who used to handle Proxim’s auditing moved to another firm on the East Coast, according to Brian Sereda, chief financial officer at Proxim, which is “transitioning to a West Coast firm” with the hiring of Mark Bailey & Co.

Proxim has been stuck in neutral, “unable to increase (its) revenues for a number of quarters in a row despite being in what are perceived as expanding markets,” according to its last annual financial filing, in which it warned that this “could have a material adverse affect on our ability to continue as a going concern.”

In January Proxim promoted its then chief operating officer, Pankaj Manglik, to chief executive to replace Robert Fitzgerald, a move that cost it about half a million in severance during the first quarter.

In February Proxim was warned by the Nasdaq stock market that its shares could be delisted in
August if it did not raise its stock price above $1 for at least 10 days.

Bay Area News Group blog editor (1221 Posts)