L&H chairman speaks out on company woes

Roel Pieper, newly appointed chairman of troubled dictation software company Lernout & Hauspie, has responded to questions about the current crisis affecting the company.

Speaking on via a conference call on Friday afternoon, Pieper admitted the company is "in a very tense, difficult, period". The company's stock is currently suspended from trade having dropped to $6 from a high of over $70 in March and allegations of financial irregularity are rife. The Securities and Exchange Commission (SEC) is investigating its business, Korean sales figures have been called into question and a class action lawsuit has been threatened. Recognising the need to resolve these problems, Pieper said: "We are going to work diligently to address any aspect of what went on. We will become very precise about what these irregularities were." Promising action sooner rather than later, he said: "Our goal is to be able to restate our financial position within weeks." However, Pieper refused to comment on key issues, such as the extent of resignations resulting from the uncertainty though he tried to reassure investors that the company would use any means available to get back to profitability. KPMG has confirmed its audit report for L&H cannot be relied upon in light of recent developments but refused to divulge further information due to client confidentiality. By Nik Hole