“Fusion-io Inc. (FIO) plunged the most ever after replacing Chief Executive Officer David Flynn with Shane Robison, a former Hewlett-Packard Co. senior leader associated with a disastrous deal by his prior employer,” Aaron Ricadela and Lisa Rapaport report for Bloomberg. “Flynn and co-founder Rick White resigned to pursue ‘investing activities,’ though both will remain on the board and serve in advisory roles for 12 months, Fusion-io said in a statement. The shares tumbled 19 percent.”
“Robison, 59, takes the helm as Fusion-io, a maker of data-storage that counts Apple Inc. and Facebook Inc. among its biggest customers, is working to diversify with lower-priced products,” Ricadela and Lisa Rapaport report. “Robison’s role guiding Hewlett-Packard’s 2011 purchase of Autonomy Corp., which resulted in an $8.8 billion writedown and allegations of accounting lapses, raises concerns about how well he can direct strategy for Fusion-io, according to Andrew Nowinski, an analyst at Piper Jaffray Cos.”
“Fusion-io’s stock fell to $14.60 at the close in New York, expanding the decline for this year to 36 percent. The Salt Lake City-based company sold shares at $19 apiece in an initial public offering in June 2011.
Read more in the full article here.
Related articles:
Fusion-io cuts 2013 forecast as Apple, Facebook delay orders – January 31, 2013
Fusion-io surprises Woz with 62nd birthday party, unveils ION Data Accelerator – August 2, 2012
Fusion-io teams with NVIDIA, Tweak Software and Thinkbox Software to accelerate entertainment production – August 8, 2011
How Fusion-io CEO Don Basile convinced Apple co-founder and ‘rock star’ Woz to go back to work – February 13, 2009
Apple co-founder Woz joins Fusion-io as Chief Scientist – February 6, 2009
Imagine the shock waves if…..nah, wouldn’t even want to contemplate it.
It’s from Bloomberg so who can believe the article.
Nothing like failing upward. In American business hourly workers eff up and get fired, executives massively eff up and hourly workers get laid off. Then the screw up executive gets a huge payday and gets hired by another clueless outfit.
Maybe this will lead Apple to bring back Xserve/Xsan so they can control the technologies being used in those shiny data centers.
spot on. Outsourcing is a fool’s game. Accountants simply don’t capture all the costs that such short-term-focused business management brings.
Why did I have to be born into a world that loves to see Apple fail and can’t stand it when everything isn’t running on Windows? Why?
This is incredible considering where the stock has come from which il was considerably higher than 19.