NEW YORK (AP) — AVG Technologies' stock fell 11 percent on Friday as its CEO resigned, its biggest one-day drop since the company went public just over a year ago.
THE SPARK: Late Thursday the Dutch maker of antivirus and security software announced that CEO J.R. Smith resigned. The company said that he would stay in the position until a successor is named. Day-to-day operations continue to be handled by Chief Operating Officer John Giamatteo.
AVG said Smith will become a member of its supervisory board.
THE BIG PICTURE: AVG went public on Feb. 2, 2012. The company was founded in the Czech Republic in 1991 and still splits its headquarters between Prague and Amsterdam. Smith had been CEO since 2007.
For its 2012, the company posted a 31 percent drop in net income, to $45.1 million, or 84 cents per share, as expenses and taxes increased. Adjusted profit improved to $1.40 per share, and revenue rose by nearly a third to $354 million. AVG forecast growth in 2013, issuing guidance for adjusted earnings per share between $1.68 to $1.88 and revenue of $408 million to $420 million.
SHARE ACTION: Shares of AVG Technologies N.V. declined $1.69 to $14 in midday trading. The stock has traded in a 52-week range of $9.42 to $16.39.