Monday, Avanex Corp. (AVNX), a Fremont, California-based manufacturer of fiber optic-based products, revealed the departure of its President and Chief Executive Officer Dr. Jo Major and Senior Vice President and Chief Financial Officer Marla Sanchez. Avanex appointed Dr. Giovanni Barbarossa as Interim Chief Executive Officer. Avanex stock plunged over 12% on the news.
Dr. Major's termination as CEO was attributed to his inability to work together with the Board of Directors effectively, while Sanchez resigned. Major also resigned from the Board of Directors.
Avanex said the departure of Major and Sanchez was not related to the company's operational performance or financial condition. The company also reconfirmed its fiscal fourth quarter revenue guidance of $50.0 million-$53.0 million. On average, six analysts polled by First Call/Thomson Financial expect fourth quarter revenues of $52.40 million. Additionally, the company anticipates positive cash flow for its fiscal fourth quarter.
The Board has begun a search for a CEO and CFO, with a subcommittee of the Board established, to review potential candidates. Paul Smith, a current member of the Board, has been appointed as Non-Executive Chairman of the Board.
Barbarossa has been associated with Avanex since February 2000 and has served as Senior Vice President and Chief Technology Officer since May 2002. He previously managed the Active Component Business Unit. Barbarossa, who joined Avanex prior to its initial public offering, has been a member of the executive team for over six years.
Smith has been on Avanex's Board since November 2007 and is currently President and CEO of PacketMotion, Inc., a network security company. Prior to joining PacketMotion, Smith was Chairman and CEO of Tasman Networks, Inc., which was acquired by Nortel Networks Corp. Earlier, Smith was Vice President and General Manager of the Telecom Division of New Focus, Inc. and Senior Vice President of Marketing and Sales at Asante Technologies, Inc.
According to Smith, "I would like to thank Jo, on behalf of our Board of Directors, for his contributions in taking the company through a difficult transition period over the last several years. We look forward to continuing the solid execution of the company's strategy."
The company last month regained Nasdaq compliance. In March, Avanex stock closed below $1 per share for 30 consecutive trading days, below the minimum required under Nasdaq rules.
Avanex is expected to hold its annual stockholders meeting July 9, where shareholders will vote on a proposed reverse stock split. The reverse stock split will help boost the value of each share, thus making it easier for the company to stay listed on the exchange.
AVNX is currently trading at $0.86, down $0.13 or 12.83%, on 1.88 million shares. For the past year, the stock trended in the range of $0.52-$2.10.
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December 19, 2025 15:10 ET U.S. inflation data and interest rate decisions by major central banks were the highlights of this busy week for economics news flow. Employment data and survey results on the housing markets also gained attention in the U.S. In Europe, the European Central Bank and Bank of England announced their policy decisions and macroeconomic projections.