Nuix share price rises following CFO and CEO transition reveal
The Nuix share price rose on Tuesday after the software company announced its CFO and CEO would be departing the company.
CFO + CEO to go
Beleaguered investigative analytics and intelligence software company Nuix (ticker: NXL), on Tuesday announced that both its Chief Financial Officer (CFO) and Chief Executive Officer (CEO) would be leaving the company.
The announcement of the CFO’s departure came first, revealed to the market at 9:11 AM.
Here it was revealed that CFO Stephen Doyle had been terminated by 'mutual agreement.' Chad Barton has been appointed as Nuix's interim CFO. The company said it was currently in the process of undertaking a global search for a permanent replacement.
Commenting on this news, Nuix's CEO, Rod Vawdrey said:
'Chad brings deep capital market relationships and a strong understanding of financial reporting and systems. He will lead a committed and highly capable team of finance professionals.'
For reference, the time of that announcement the CEO transition had not been announced. That announcement came at 9:46 AM and unlike the CFO announcement was designated as price sensitive.
Here it was revealed that Nuix CEO Rod Vawdrey had handed in his notice to retire from the company.
The company noted that Mr Vawdrey would continue in the role of CEO until a suitable replacement was found.
Commenting on the announcement of Mr Vawdrey's retirement notice, Nuix Chair Jeff Bleich said:
'Rod has agreed to remain at least through the announcement of end of year results, and throughout the process required to find the right replacement to ensure the smoothest possible transition.'
'We are confident that the pool of candidates will be a deep one and the Board is very focused on attracting the right individual to take on the role,’ Mr Bleich added.
The search for a replacement Chief Executive is being undertaken by Russell Reynolds, a respected global management consulting firm.
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Nuix share price in focus
Despite now being in search of both a CEO and CFO, the Nuix share price was actually bid higher in the first hour of trade, up 2.26%, to $2.71 per share, by 10:41 AM.
Despite the positive reaction from the market, this marks yet another disruptive event for the, at one point, much hyped company. YTD the stock remains down 68%.
This comes after Nuix management has issued a number of successive downgrades following the release of the company’s most recent interim results.
In April the company said it would miss its prospectus revenue guidance, saying it now expected full-year revenue to come in at between $180 million to $185 million. The company would lower expectations even further in late-May, saying the expectation was for FY21 revenues of between $173 million to $182 million.
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