Velo3D (NYSE: VLD) announced that William McCombe will leave his position as Chief Financial Officer (CFO) to pursue other career opportunities. In light of this development, Bernard Chung, who has been serving as Velo3D’s Vice President (VP) of Finance, is set to assume the role of Acting CFO beginning this Thursday, September 29, 2023. Both Chung and McCombe joined Velo3D in 2020, a significant period when the company began charting its path toward a public listing. Despite stepping down from his primary role, McCombe will continue assisting with transitional duties until November 7, 2023, and will also be present for the company’s third-quarter earnings conference call on the same day.
“I want to thank Bill for his dedication and leadership over the last three years as he guided the company through the listing process and helped successfully grow Velo3D into one of the leading technology suppliers in the additive manufacturing industry,” said Benny Buller, CEO of Velo3D. “I wish Bill the best of luck in his future endeavors. I am also pleased to welcome Bernie as our Acting Chief Financial Officer and look forward to continuing to build on our 3-year partnership. Given his more than 20 years of finance experience, we expect a seamless transition as he takes on his new responsibilities.”
Since joining the company, McCombe played a pivotal role in Velo3D’s journey, especially during its public listing phase. His background includes positions as CFO at HZO, a global leader in nano coatings that safeguard electronics, Maxar Technologies, and Senior VP at Maxar subsidiary SSL (formerly Space Systems/Loral). He also was a Managing Director at Bank of America Merril Lynch.
Replacing him is Bernard Chung, a finance professional with a track record spanning over two decades. Before his role at Velo3D, Chung held various influential positions across industries, from manufacturing and transportation to technology. Primarily, he served as a director and audit manager for KPMG and is a Certified Public Accountant. LinkedIn insights also highlight Chung’s pivotal role in preparing Velo3D for its public listing via a special purpose acquisition company (SPAC) merger, successfully ending in the transaction in late September 2021.
Following its public debut at a price near $10, Velo3D’s stock price began to decline in March 2022. The recent announcement surrounding the CFO transition further impacted the stock. The day following this news, Velo3D’s stock opened at $1.41, dropping by 20% to close at $1.13. Though it’s tempting to attribute this drop only to the CFO’s departure, it’s important to consider Velo3D’s broader stock trajectory, which had been trending downwards. Analysis from sources like Simply Wall St. revealed a 46% drop in Velo3D’s shares over the last twelve months.
On the financial front, 2023 started on a positive note for Velo3D, with revenues surging by 120%, primarily driven by the demand for the Sapphire XC product line. Contrasting this, the company reported a net loss, and in the subsequent quarter, it missed the mark on both analyst projections for net loss and revenue, adjusting its revenue projections downward.
While sudden transitions, like that of a CFO, can spur market speculations and reactions, it’s crucial to view them in the broader company and market context. While the recent decline in Velo3D’s stock following the announcement is evident, the company’s stock challenges over the past year cannot be ignored. Although McCombe’s departure appears amicable, it might be perceived by the market as a sign of internal instability. Nevertheless, a smooth transition is anticipated with Chung’s vast experience and his established relationship with Velo3D. This change comes at a time when Velo3D is facing challenges in the stock market and has seen mixed financial results. The next few months will show how well the 3D printing brand handles this transition and if they can progress toward breaking even and, eventually, achieving profitability.
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