Why Fusion-io Shares Got Destroyed
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Fusion-io got destroyed today, down by as much as 27% after the company announced a management shakeup.
So what: CEO and co-founder David Flynn has abruptly stepped down alongside his fellow co-founder Rick White in order to "pursue entrepreneurial investing activities." Both Flynn and White will remain on the board of directors as advisors for the next 12 months.
Now what: Shane Robison has been named CEO. Robison was previously a high level executive at Hewlett-Packard until November 2011. That experience will prove crucial as Fusion-io tries to further grow its presence in the enterprise storage market. Robison said the transition was not caused by any problems within the company or disagreements on strategy. The company reaffirmed its guidance, with fiscal 2013 revenue still expected to be about $435 million.
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The article Why Fusion-io Shares Got Destroyed originally appeared on Fool.com.Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.