“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.
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