Fusion-io Stock Sinks on CEO, CMO Departures

by Christopher Freeburn | May 8, 2013 11:23 am

Fusion-io Stock Sinks on CEO, CMO Departures

fusion Fusion io Stock Sinks on CEO, CMO Departures[1]Shares of computer memory producer Fusion-io (NYSE:FIO[2]) plunged more than 26% in Wednesday morning trading after the company announced that two senior executives had abruptly left the firm[3].

Fusion-io said that CEO David Flynn and Chief Marketing Office Rick White had departed the company to launch a new business. Flynn and White were Fusion-io’s co-founders. Shane Robinson, a member of the company’s board of directors, has been tapped as its new CEO, Reuters noted.

A JPMorgan Chase (NYSE:JPM[4]) analyst noted that Flynn was “well regarded” in the technology industry and cautioned that his departure was not a “good sign.”

Robinson previous served as chief strategy and technology officer at Hewlett-Packard (NYSE:HPQ[5]) and participated in HP’s disastrous acquisitions of Autonomy[6].

Flynn led the company’s initial public offering in 2011.

Last year, Fusion-io teamed with Cisco Systems (NASDAQ:CSCO[7]) to provide flash memory technology for use in Cisco servers[8].

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2012/01/fusion.png
  2. FIO: http://studio-5.financialcontent.com/investplace/quote?Symbol=FIO
  3. two senior executives had abruptly left the firm: http://www.reuters.com/article/2013/05/08/us-fusionio-ceo-idUSBRE9470M820130508
  4. JPM: http://studio-5.financialcontent.com/investplace/quote?Symbol=JPM
  5. HPQ: http://studio-5.financialcontent.com/investplace/quote?Symbol=HPQ
  6. disastrous acquisitions of Autonomy: http://investorplace.com/2012/11/hewlett-packard-shareholder-sues-company/
  7. CSCO: http://studio-5.financialcontent.com/investplace/quote?Symbol=CSCO
  8. provide flash memory technology for use in Cisco servers: http://investorplace.com/2012/06/fusion-io-partners-with-cisco-on-flash-for-servers/

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