Zoltek identifies accounting errors, CFO resigns

The news sent Zoltek shares down $4.46, or 16 percent, to $23.11 in morning trading, after falling to $22.83 earlier in the day. Over the past 52 weeks, the company's shares have traded between $20.36 and $51.77.

Zoltek said its audit committee determined that the company's financial statements as of Sept. 30, and for the fiscal year and quarter ended Dec. 31, should no longer be relied upon.

The company said the errors resulted from a $175,000 payment by a subsidiary of the company in September 2007 that was not properly authorized or reported in the company's financial records.

Zoltek said it also found a similar payment of $75,000 in January 2008. The company said it's investigating to determine whether any other unauthorized transactions have occurred.

In addition, the company said that Kevin J. Schott resigned effective May 1 and that Zsolt Rumy, the company's chairman and chief executive, became interim chief financial officer effective the same day.

Zoltek said it's conducting a search for a permanent chief financial officer and hopes to hire one at the earliest practicable time.