Husband-and-Wife Team Leading Marvell Technology Resigns
April 05 2016 - 10:00AM
Dow Jones News
The husband-and-wife team running Marvell Technology Group Ltd.
resigned Tuesday, a month after an audit-committee investigation
identified "tone at the top" issues that led to a number of
accounting problems.
Shares jumped 14% to $11 in premarket trading.
Chief Executive Sehat Sutardja and President Weili Dai, who are
married, resigned from their managerial positions at the
semiconductor company they founded. The two will remain on the
board with Mr. Sutardja remaining Chairman.
"The board believes that the time has come to move in a new
leadership direction," said Marvell's lead outside director, Arturo
Krueger.
The chip maker, which is under federal investigation over its
accounting practices and other issues, said in March that an
internal investigation had found a series of accounting problems
largely tied to when revenue was recognized. The company said it
hadn't found evidence of fraud. Rather, it cited what it called
"tone at the top" issues, including management pressure to meet
revenue targets.
The company's external accounting firm, PricewaterhouseCoopers
LLP, resigned in October. Marvell has since hired Deloitte &
Touche LLP.
Marvell's previously announced search for a permanent chief
financial officer and other independent board members continue. Two
executive vice presidents, Maya Strelar-Migotti and Pantelis
Alexopoulos, will lead an interim office of a chief executive until
new leadership is found.
Last week, the company said it would miss a deadline for a
financial reporting deadline. On Tuesday Marvell said it was
working to finish its annual report and two quarterly reports "as
soon as practicable."
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
April 05, 2016 09:45 ET (13:45 GMT)
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