Broadband access firm Paradyne Networks said Monday that CEO Andrew S. May has resigned, and will be replaced by current President and COO Sean E. Belanger.
The company's previous financial guidance is obsolete because of the structural changes, the company said. Paradyne will issue new 2001 guidance when fourth quarter results are released, Belanger added.
The change comes on the heels of a disappointing third quarter for the company, which missed analysts' reduced estimates back in October after warning of a shortfall.
Shares of Paradyne gained over 20 percent, moving up 0.34 to 1.97. The stock has fallen sharply off its 52-week high of 53, mirroring the troubles in the DSL sector as a whole.
According to a news release, May will stay on as a strategic advisor through next summer and remain a member of the company's board of directors. May had been Paradyne's CEO since Dec. 1996 and a director since Jan. 1997
Belanger, the new chief executive, took the reins at Paradyne on Dec. 8. Belanger has also been elected to the Board of Directors.
The new CEO indicated that the company would undergo structural and marketing changes to get back on track.