NEW YORK ( TheStreet) -- Fusion-IO (FIO) shares were higher in pre-market trading by 1.16% to $14.77, following news that David Flynn resigned as CEO and president, effectively immediately. The company also announced that co-founder, Rick White, has resigned as chief marketing officer to join Flynn in early stage investing activities.
The announcement came as a huge surprise to Wall Street, which sent shares sharply lower following the news. Shares closed at $18 on May 7, and fell to $14.60 at the end of trading on May 8, a decline of 18.9%.
Shane Robison is taking over for Flynn, having been most recently the executive vice president and chief strategy and technology officer at HP (HPQ). "Shane Robison is a proven executive with the experience and expertise to lead Fusion-io as we enter our next phase of growth and development," said Scott Sandell, lead independent director of Fusion-IO's board.
The company announced this morning that Robison will participate in the Tech Talk with Technology Insights Research webcast today.
Fusion-IO, which counts Apple (AAPL - Get Report) and Facebook (FB - Get Report) as two of its largest customers, reaffirmed the financial outlook the company gave when it reported earnings April 24th. For the fourth-quarter of fiscal 2013, the flash memory maker expects revenue to be approximately $110 million, with non-GAAP gross margins between 56 and 58%. For the full year, revenue is expected to be approximately $435 million. -- Written by Chris Ciaccia in New York >Contact by Email. Follow @Chris_Ciaccia