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Exodus for CFO of Genesis Microchip

Friday's resignation comes only days before the company reports earnings.
Dave Cook and Stephen TaubApril 30, 2007

Genesis Microchip announced on Friday that chief financial officer Michael Healy will leave the company “to pursue another opportunity.”

The announcement by Genesis, a $330 million market-cap designer of integrated circuits used in flat-panel displays, at first glance seemed unremarkable. In a statement, president and chief executive officer Elie Antoun praised Healy “for his dedication, commitment, and significant contribution to Genesis during the past three years”; the statement also noted that Healy would “assist in a transition of duties” before his May 8 departure.

The company did not provide further details, except to add that it is “commencing a search” for Healy’s successor.

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Friday’s resignation may be noteworthy for its timing, however: This Wednesday, Genesis is scheduled to report earnings for its fiscal fourth quarter.

Bear in mind that the company’s share has dropped by nearly half in the past 12 months, and when Genesis reported earnings for the third quarter, it disclosed a much wider loss than Wall Street analysts had anticipated. Little surprise, its stock subsequently plunged, and several analysts downgraded the company’s shares.

According to SeekingAlpha.com, Daniel Gelbtuch, an analyst at CIBC World Markets, asserted that the “wheels continue to fall off the train,” pointing out that Healy’s departure follows those of several other Genesis executives.

On Monday, IP telephony provider ShoreTel had an announcement of its own; Healy will join the company in mid-May as its new chief financial officer.