News

14 July 2008

 

Avanex stockholders authorize reverse stock split

Optical communications component and module maker Avanex Corp of Fremont, CA, USA says that, at a special meeting of stockholders last week, the board of directors was authorized to effect a reverse split of its common stock at any time before the annual meeting of stockholders in 2009 at a ratio ranging from 10-for-1 to 15-for-1 (i.e. combining between 10 and 15 shares into one). The board says that it will assess the appropriateness and size of a reverse split.

“We are pleased with the support of our stockholders in authorizing the board to effect a reverse split, and the confidence that it represents in Avanex going forward,” says interim CEO Dr Giovanni Barbarossa.

Barbarossa (senior VP and chief technology officer since May 2002) was appointed as interim CEO earlier last week after 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”. The firm also announced the resignation of Marla Sanchez as senior VP and chief financial officer. Avanex is currently seeking a CEO and CFO.

For fiscal third-quarter 2008 (to end March) revenue was $49.6m, down 5% on $52m the prior quarter. However, the firm has reconfirmed its fiscal fourth-quarter 2008 revenue guidance (given at the beginning of May) of $50-53m, and anticipates positive cash flow.

See related item:

Avanex announces termination of president/CEO and resignation of CFO

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