Fusion-io Shares Plunge After CEO Departs
May 8th, 2013 By: Rich Miller
Shares of flash memory specialist Fusion-io plunged more than 20 percent today after the company announced that CEO and President David Flynn and Chief Marketing Officer Rick White had departed to “pursue entrepreneurial investing activities.” Board member Shane Robison has been named Chairman, CEO and President.
Flynn’s sudden departure didn’t sit well with securities analysts, who noted that its been just two weeks since Fusion-io announced a $100 million acquisition. Analysts also fretted about whether Flynn’s exit would impact the company’s business with Facebook, which along with Apple is Fusion-io’s largest customer. Several analysts suggested Flynn had been a key player in the relationship with Facebook.
Shares of Fusion-io closed off $3.40 to $14.60, a drop of 19 percent, in trading on the New York Stock Exchange.
Robison, 59, has more than 30 years of experience in management roles with some of the world’s leading technology companies, including AT&T Labs, Cadence Design Systems and Apple. He most recently served as Executive Vice President and Chief Strategy and Technology Officer of HP from May 2002 until November 1, 2011.