Norrod also joins the board, effective immediately. Mory Ejabat will stay on as Executive Chairman.
"The Board and I have complete confidence that Jim is the right person to be our next CEO," Ejabat said in a company statement. "Jim's 25-year career as a CEO has been marked by outstanding performance, and he has demonstrated remarkable talent and excellent judgment in all of his endeavors. As Zhone's new CEO, Jim will manage the day-to-day operations while I will continue to provide strategic oversight."
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The stock was up 30.29% to $3.57 at 11:49 a.m. More than 5.4 million shares had changed hands, compared to the average volume of 317,444.
Separately, TheStreet Ratings team rates ZHONE TECHNOLOGIES INC as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate ZHONE TECHNOLOGIES INC (ZHNE) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall."