Why Freescale Semiconductor Tanked
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What: Shares of Freescale Semiconductor (NYS: FSL) have tanked today by upward of 14% after the company reported earnings and that the CEO is retiring.
So what: Revenue in the first quarter added up to $950 million, which resulted in an adjusted net loss of $0.04 per share. Those results were mixed compared to consensus estimates, with the market expecting $961 million in sales, although the bottom line was a penny better than the $0.05 loss that was predicted.
Now what: CEO Rich Beyer said there were some challenges in the company's end markets, but the company was still able to maintain gross margins and improve its capital structure. Freescale also announced that Beyer is planning to retire and that the board has begun looking for a replacement. Beyer will remain at the helm until a new CEO is found.
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