31.01.08 Cowen & Co. analyst Rob Stone noted that some investors will view Shao's departure as an indication of a shortfall in its fourth-quarter profits. The company is scheduled to report its quarterly results in the coming weeks.
However, Stone said in a note on Thursday that his conversations with the company indicated that the timing was due to disclosure obligations once the hiring decision had been made, and it should not be seen as a symptom of financial woes.
"We have spoken with management and understand that the timing of the annoucement was driven by the desire to have the incoming VP finance on board during the transition period prior to the current CFO's departure. TSL is aware of the market reaction might have been less pronounced if the CFO change has not announced till after releasing the earning. However, once the hiring decision was made, this created a disclosure obligation."
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