News

7 July 2008

 

Avanex announces termination of president/CEO and resignation of CFO

Optical communications component and module maker Avanex Corp of Fremont, CA, USA has announced the termination of Dr Jo Major from his position as president and CEO due to the “inability of Major and the board of directors to work together effectively”. Major has also resigned from the board. The firm has also announced the resignation of Marla Sanchez as senior VP and chief financial officer.

Avanex has appointed Dr Giovanni Barbarossa as interim CEO. Barbarossa has worked at Avanex since February 2000 and has served as senior VP and chief technology officer since May 2002. Previously he ran the Active Component business unit. Barbarossa joined the firm prior to its initial public offering and has been a member of the executive team for over six years (the longest tenure of any officer at Avanex).

Meanwhile, the board has begun a CEO and CFO search, and a subcommittee has been established to review potential candidates.

Also, Paul Smith, who has served on Avanex’s board since last November, has been appointed as non-executive chairman. Smith is currently president and CEO of network security firm PacketMotion Inc. Previously, he was VP and general manager of the Telecom Division of New Focus Inc (subsequently acquired by Bookham Inc) and senior VP of marketing and sales for Asante Technologies Inc, then chairman and CEO of Tasman Networks Inc (acquired by Nortel Networks Corp). “I would like to thank Jo, on behalf of our board of directors, for his contributions in taking the company through a difficult transition period over the last several years,” says Smith.

Avanex says that the departure of Major and Sanchez is not related to its operational performance or financial condition. For fiscal third-quarter 2008 (to end March) revenue was $49.6m, down 5% on $52m the prior quarter. However, the firm is reconfirming its fiscal fourth-quarter 2008 revenue guidance (given at the beginning of May) of $50-53m. It also anticipates positive cash flow.

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Avanex grows profit despite falling revenues

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