BMC and CFO have feelings of mutual resignation
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BMC hit investors and customers with unexpected news on Monday, revealing that its CFO George Harrington has resigned.
The software maker characterized the change as one of "mutual agreement." It tapped Treasurer Stephen Solcher as interim CFO and announced a hunt for a permanent replacement. In a show of confidence, BMC released a canned quotation to celebrate Solcher's past achievements,
"Steve has been a driving force in the transformation of BMC through his leadership in finance, accounting and our ongoing acquisition activities," said CEO Bob Beauchamp. "Moving forward with Steve as interim CFO, we are assigning a proven veteran performer to this key position while we complete our search."
Did Harrington merit a canned statement too? You bet.
"I want to thank George for his service to BMC," said Beauchamp. "Under his leadership we successfully completed our year-end financial audit, strengthened our balance sheet, and significantly improved our cost structure. George and I agreed that with these important milestones behind us, and with our recently posted positive quarterly results, the timing of his departure was optimal for him and for BMC."
Analysts picked up on the peculiar nature of the resignation and press statement, calling Harrington's departure "unusual" and of "curious timing."
And, in fact, the move does appear as a shocker given that BMC just came off its best quarter in ages. It reported solid first quarter results and provided an optimistic outlook on the coming year. Investors welcomed such news over BMC's more typical lowering of expectations and revelations of job cuts that filled 2005.
Shares of BMC dipped just 2 per cent, at the time of writing, to $20.00. ®