Global Eagle Entertainment Inc.’s stock fell 23.9 percent to $4.48 a share on Tuesday, after the company’s chief executive officer, Dave Davis, and its chief financial officer, Tom Severson resigned abruptly the day before.
The Marina del Rey satellite communications company also announced that it expects its full year 2016 revenue to be at or near the low end of its prior guidance range of $530 million to $538 million and that it would need additional time to file its annual report with the Securities and Exchange Commission, according to a press release.
Specific reasons were not given for the resignation of Davis or Severson. Jeff Leddy, a member of the company’s board of directors, was appointed chief executive on Tuesday. Leddy previously served as chief executive of Verizon Telematics, formerly Hughes Telematics, a connected car developer that was purchased by Verizon in July 2012 for $612 million.
Global Eagle Entertainment Inc. acquired in July satellite communications firm Emerging Markets Communications for $550 million in cash and stock. The firm blamed that transaction for its delayed financial filing, stating that its financial reporting process has become increased in size and complexity. The firm also disclosed that it needed time to address “material weaknesses in internal control over its financial reporting.”
Global Eagle did not respond immediately to a request for interview.
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