The eponymous co-founders of Lernout & Hauspie (L&H) have resigned as joint chairmen and managing directors as the Belgian speech recognition specialist attempts a financial recovery.
Roel Pieper, former chief executive at Tandem Computers, will replace Jo Lernout and Pol Hauspie as chairman. John Duerden, who was appointed chief executive in August, will become sole managing director.
Company officials said the executive changes are "steps towards resolving recent controversies affecting the company".
Industry analyst Romteck said that Dragon Systems, an L&H subsidiary, appears to be doing well in the market. "It seems that L&H is pushing Dragon, which specialises more than L&H, into the corporate speech recognition market. UK sales for L&H have dropped, but Dragon has now taken the number two slot behind IBM in the market by publisher value," said an analyst.
L&H also confirmed that it would restate its financials for the past 10 months, following a company-wide audit. A probe into its Korean division was mounted after allegations that some companies, which L&H identified as Korean customers, denied doing any business with the firm.
An employee of LG Electronics, one of 18 alleged customers, said it had never bought products or licences from L&H.
The company also warned that its turnover for the third quarter ended 30 September will be at least $40m below its previously published figures.
Both Lernout and Hauspie will stay on as vice chairmen of the board and will chair its technology advisory committee. Hauspie has taken a leave of absence from his responsibilities as director for medical reasons, the company said.
L&H is also expected to appoint a new chief financial officer to replace Carl Dammekens, who will assume another position within the company.
Microsoft receives a 30 per cent cut of all purchases on the Xbox digital store
Credit card thieves used Apple ID accounts to buy and sell virtual currency for Clash of Clans and Clash Royale and Marvel Contest of Champions
$5.1bn fine further evidence that the EU is anti-US, claims Trump
New cable will connect Virginia to France