IRVINE, Calif. - Shimmick Corporation (NASDAQ: SHIM), known for its expertise in water infrastructure projects, has announced a change in its financial leadership, appointing Amanda Mobley as the interim Chief Financial Officer. Mobley replaces Devin Nordhagen, who is stepping down to explore other business opportunities but will stay on for a transitional period.
CEO Steve Richards acknowledged Nordhagen's contributions, particularly highlighting his role in the company's successful IPO in 2023 and his efforts in building a robust financial team. Richards expressed confidence in Mobley's capabilities, citing her long-standing relationship with the company and her proven track record in financial management.
Mobley, who has been with Shimmick since 2011, has held various financial management roles, including project accounting and financial reporting. Before joining Shimmick, she served as an Audit Manager at KPMG, focusing on public financial companies. A Certified Public Accountant, Mobley earned her B.S. in Business Administration from Colorado State University.
In her statement, Mobley expressed enthusiasm for her new role and emphasized the strength of the finance team, reflecting the company's readiness to continue its transformation and growth in the water infrastructure sector.
Shimmick has a notable history of working on significant water projects, such as the largest wastewater recycling and purification system in California and the iconic Hoover Dam. The company prides itself on providing comprehensive solutions, including long-term operations and maintenance, led by seasoned industry professionals.
The press release also contained forward-looking statements regarding the CFO transition and Shimmick's ongoing transformation. These statements, as usual, come with the caveat that actual results may differ due to various risks and uncertainties.
Investors and stakeholders are watching closely as Shimmick navigates these leadership changes, aiming to maintain its position as a leading provider in the water infrastructure arena. This news is based on a press release statement from Shimmick Corporation.
In other recent news, Shimmick Corp faced a downgrade from Craig-Hallum analyst due to a disappointing first quarter performance. The company's results fell short of expectations, resulting in a slower start in new projects and increased costs.
Shimmick Corp also breached a covenant on its revolving credit facility and is currently negotiating a waiver. Despite the challenges, the company is expecting to complete $40 million in non-core asset sales during the second quarter.
Furthermore, Roth/MKM adjusted its outlook on Shimmick Corp by lowering the price target and maintaining a Neutral rating. The disappointing results led to a breach of covenant terms on the company's revolving credit facility. Despite these setbacks, Roth/MKM remains optimistic about Shimmick's long-term prospects, particularly in the water infrastructure sector.
Lastly, Shimmick Corp could not file its Q1 2024 report on time due to a default on its credit agreement, leading to ongoing discussions with the lender to negotiate a waiver or amendment. The company is actively seeking alternative financing options, and any developments in this matter could influence investor decisions. These are recent developments that investors should take into account.
InvestingPro Insights
Amidst the leadership transition at Shimmick Corporation (NASDAQ: SHIM), financial metrics from InvestingPro offer a snapshot of the company's current market position. With a market cap of $47.26 million, Shimmick's financial landscape is marked by a noteworthy price to earnings (P/E) ratio of -1.83, reflecting challenges in profitability. Furthermore, the company's revenue has seen a decline over the last twelve months as of Q1 2024, with a decrease of 13.61%.
InvestingPro Tips highlight several areas of concern for investors. Shimmick's stock is suggested to be in oversold territory according to the Relative Strength Index (RSI), which could indicate a potential rebound or further scrutiny on its valuation.
Moreover, the company's financials show signs of strain, with analysts revising earnings downwards and anticipating a sales decline in the current year. Shimmick's stock has also experienced high price volatility, and it is trading near its 52-week low, which could be a red flag for investors considering the stock's recent performance.
For those looking to delve deeper into Shimmick Corporation's financial health and future prospects, InvestingPro offers a comprehensive set of tools and metrics. Subscribers can access additional InvestingPro Tips for a more informed investment strategy. Currently, there are 19 additional tips listed on InvestingPro for Shimmick Corporation that can be found at: https://www.investing.com/pro/SHIM. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing valuable insights for those monitoring the company's performance during this period of change.
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