Treo maker PalmOne Inc. announced chief Todd Bradley will resign his position at the end of the quarter. The news seemed to alarm investors, who sent the company’s stock down more than 6 percent to about $24.98 per share.
PalmOne’s President Ed Colligan will take over as interim chief executive officer for the company after Bradley exits. Colligan hails from Treo innovator Handspring Inc., which PalmOne acquired. PalmOne said Colligan is in the running for the permanent CEO position.
Investment firm Lehman Brothers said the executive changeup is somewhat worrisome, although it pointed out that Colligan has more experience in the smart-phone market than Bradley does. Nonetheless, the firm lowered its target price for the company’s stock from $36 per share to $30.
“I’ve accomplished what I set out to do,” Bradley said. “The company is on a growth path, our product portfolio is exciting and competitive, and I have great confidence in the company’s current and future prospects. PalmOne has an excellent management team and talented employees to carry the business forward. I feel the time is right for me to move on to another challenge.”
“Todd has accomplished his mission, and we thank him for the contributions he made in steady financial improvements, in bringing innovation to the product roadmap and in pursuing the right strategic objectives, including the acquisition of Handspring,” said Eric Benhamou, the company’s chairman. “The company now is positioned for profitable growth and success. We respect Todd’s desire to move upon completion of this key milestone and appreciate his willingness to support the company through the transition to its next CEO.”
