Matrikon's Challenge

Here’s an interesting question: 

>> What happens when a CEO, COO, CFO and VP of sales all quit? 

This is surely a question that Matrikon investors and employees must be asking….

Four officers of the company all gone within 4 months.  Ouch!

Here’s the script:

>> First, the CEO leaves in December – read more

>> Then, in January the Executive VP of Operations leaves – read more

>> And then, in February, the CFO announces his departure – read more

>> And last month, the leading VP of Sales resigns – read more

I don’t think we’ve ever seen such an exodus from the top at any publicly-traded vendor in our industry.

A first test of whether lead balloons can actually float took place yesterday when Matrikon announced their quarterly earnings. 

And even though the stock dropped by 15-20% around the recent earnings and strategy telecon, it looks like common perceptions about flotation may be suspended for a time…

Hard to tell what’s next though through the mixed signals… quarterly revenue growth is down to single digits, even though quarterly gross margin is claimed to have reached a new high. 

With the company-provided forecast at double-digit revenue growth and extreme profit growth ( a rather wide range of 34-62% was provided in the recent news release ), it would seem that the new CEO has his hands full.

Only time will tell what’s next.

Stay tuned, I guess.