said James E. Donegan has resigned as the company's chairman and chief executive, effective immediately, saying that stepping down is in the best interest of the company and its shareholders.
Eric Erdman, the company's chief financial officer, will serve as interim CEO until Donegan's successor is named. Erdman will also keep his CFO duties. In addition, the board of directors has elected Jeffrey Diamond, a current member of the board, to serve as chairman.
"The decision to resign was very difficult, as I feel I have made significant contributions to the company," Donegan said in a statement. "I am devoted to the company and will do whatever I can to make it successful."
Donegan's statement said he disagreed with an opinion recently issued in the litigation between Genesis and
Last week, the U.S. District Court for the Eastern District of Virginia said that based on a memorandum of understanding, Genesis should pay Silicon Image a monetary settlement, a license fee and running royalties on all digital visual interface and high-definition multimedia interface products.
Erdman became a Genesis director in May, and he previously served on the board from October 1995 to September 1996. He joined Genesis in July 1995. Diamond has served as a director since April 2001. From May 1999 to December 2000, he served as an executive officer and as a consultant to Genesis.
Shares of Genesis Microchip were losing $1.86, or 12%, to $13.13 in