Satellite telecommunications service provider Speedcast CEO PJ Beylier has resigned from the company in light of a disappointing preliminary FY19 financial result.
Speedcast has said that its FY19 earnings result could be around 10% below prior guidance which, when it published its FY19 first-half results last year, stood in the range of between $150m and $160m in pre-tax earnings (EBITDA).
Speedcast is now looking for a new CEO, focussing on candidates in Europe and the US. In the meantime, Beylier will be available to the company for three months and then will receive a termination payment equivalent to 12 months’ salary. He will forfeit any unvested shares and will receive no bonus for the FY19 year.
According to the announcement from Speedcast, the downgraded result included items such as procurement savings and the sale of minor surplus assets that do not contribute to ongoing earnings.
In a statement, Beylier called 2019 a “challenging” year and was quoted as saying: “The quality of the financial result is not in line with the Board and management’s expectations, which I take responsibility for and have therefore decided to resign.”
Speedcast chair Stephe Wilks remarked: “We acknowledge the many years of committed service PJ has given to Speedcast and the significant business that he and the team created over that time. However, in light of the preliminary FY19 result, the board has accepted PJ’s resignation and will now move to urgently finalise that result.”