Fusion-IO Rocked as CEO, Co-Founder Depart

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) and Facebook ( FB) 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

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