Skullcandy shares drop after CFO resigns

AP News
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Posted: Mar 06, 2012 12:21 PM
Skullcandy shares drop after CFO resigns

Shares of Skullcandy Inc., best known for its brightly colored headphones, took a hit Tuesday after its chief financial officer and general counsel resigned to "pursue other opportunities," including charitable work. Skullcandy is looking for a replacement.

THE SPARK: Mitch Edwards will stay in his post until April 1, the company said. Skullcandy, which went public last July, said Edwards was instrumental as the company held its initial public offering and in its transition to being a publicly traded company.

The resignation of a freshly public company's CFO with no immediate replacement seemed to give investors pause.

After April 1, Ron Ross, vice president of finance, will serve as principal accounting officer until a permanent successor is appointed.

Edwards said he will remain a Skullcandy shareholder. He owns 10,000 shares of Skullcandy, less than 0.1 percent of all stock outstanding, according to FactSet.

BACKGROUND: Skullcandy headphones are sold in electronics, sporting goods and mobile phone stores, as well as by mass retailers such as Target and Best Buy. The company also sells t-shirts, iPod cases and other accessories. The popularity of iPods and iPhones and other portable gadgets has helped grow its revenue.

SHARE ACTION: Shares of Park City, Utah-based Skullcandy fell $1.04, or 7 percent, to $13.79 in midday trading. That's well below their IPO price of $20. The stock has traded from $11.79 to $23.40 since the Park City, Utah, company's IPO.