It was an underwhelming trading update from Atomos today, the main features being:

• Black Friday sales - a historically important period for them - were soft (though not quantified)
• As a result, the financial outlook has been withdrawn
• Undertaking a cost out program expected to reduce the cost base by 30% by mid-2023
• The good news is the cost out program will lead to breakeven at around $60m of revenue. The bad news is that when you put out a number like that at the same time as withdrawing guidance, the market will gravitate to that number as the expectation for FY23. (Revenue in FY22 was initially $82m before being revised down to $73.3m after the pesky auditors insisted on the accounts being compliant).
• Some hope is being put on their ability to commercialise 8K functionality. Much of the effort being put into that appears to be in sale or licensing to other camera makers, rather than organic growth.

It's been a severe fall from grace by AMS over the past 18 months. I really want to like them but once a question mark develops around whether you've been cooking the books over the past few years, a big red flag gets raised and it takes a long time to win back trust.

[Not held]

Further to @Rocket6 post about directors resigning you have the announcement below this morning adjusting reported FY22 figures at their auditors request.

It's a significant change too. Although they say it only relates to sales over four days, those four days account for more than 10% of the entire year's revenue (per the 4C). That in itself sounds a bit off. If you were an Atomos bull you might say it gives FY23 a huge free kick, but if you can't trust their accounting you have to start to second guess everything. I do note that the Chairman's letter in the annual report gives a little more detail to what is provided below and Deloitte have given them an unqualified audit opinion (based on the revised figures).