Violin Memory Names DeNuccio CEO After Post-IPO Stock Plunge
Violin Memory Inc. (VMEM), a maker of flash-memory storage systems, named Kevin DeNuccio as president and chief executive officer to replace Don Basile, who was fired in December amid mounting losses and a plunge in the stock.
DeNuccio, 54, was also elected to the board, the Santa Clara, California-based company said today in a statement. The executive, who most recently managed Wild West Capital LLC, was president and CEO of Redback Networks Inc. when it was acquired by Ericsson AB for $2.1 billion in 2007, Violin Memory said.
Violin Memory stock has declined 59 percent since the company’s initial public offering in September as it struggled to compete with larger companies and as its top reseller, Hewlett-Packard Co., opted to shift focus to its own rival product. Activist shareholder Clinton Group Inc. said last week Violin Memory has attracted buyout interest, and has said the company should seek to sell itself.
Howard A. Bain III, who had been acting as Violin Memory’s CEO since Basile’s exit, will remain chairman.
The company’s shares were unchanged at $3.78 at the close in New York. Violin Memory sold shares to the public at $9 apiece on Sept. 26, and dropped as low as $2.56 in December. It has a market value of about $312 million.
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