Why Cree Shares Plunged
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What: Shares of LED specialist Cree (NAS: CREE) have plunged today by as much as 13% on news that CFO John Kurtzweil has resigned to "pursue other opportunities."
So what: Kurtzweil will stay on board until June 15 to help with the transition, and the company has named Controller Michael McDevitt as the interim CFO as the company searches for a permanent replacement. Kurtzweil is joining the much smaller company Extreme Networks (NAS: EXTR) as its CFO.
Now what: Abrupt executive resignations are never a good thing as far as investor confidence goes, but Cree CEO Chuck Swoboda reaffirmed the company's June quarter guidance by saying, "We are encouraged with our progress in growing the business through the first half of the quarter. At this point, we remain on track with our targets." During its last earnings release, Cree guided next quarter's revenue to be $295 million to $315 million. Losing a high-level executive is always tough, but the circumstances surrounding Kurtzweil's exit don't look like cause for concern.
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