MobileIron Shares Plunge After Q1 Earnings Warning And CFO Resignation

MobileIron was hit by a double blow Wednesday, reporting that its chief financial officer, Todd Ford, is resigning just as the company posted disappointing preliminary first-quarter results.

Shares for the mobile device management company plunged 29 percent early Thursday following the news, falling below $7 per share before recovering a bit to close at $7.11, down more than 25 percent.

Ford, who has been with MobileIron since December 2013, according to his LinkedIn profile, will resign to join another company no later than May 4. The departure "is not based on any disagreement with the company’s accounting principles or practices or financial statement disclosures," according to a release.

[Related: MobileIron Tackles Business Data Charge Quandary Through AT&T Work Platform]

In the meantime, the company will name an interim CFO as it conducts a search for a permanent replacement.

MobileIron posted preliminary earnings for the first quarter ended March 31, with non-GAAP revenue in the range of $32 million to $33 million, dropping below its previous guidance range of $34 million to $37 million. Meanwhile, gross billings for the company were reported to be between $35 million and $37 million, as opposed to the $40 million to $42 million previously expected.

’Near the end of the quarter, we witnessed multiple large deals from North American customers that did not close as expected. Further, we saw a large shift by customers to our monthly subscription offering, which resulted in lower billings and revenue,’ said MobileIron CEO Bob Tinker in a release. ’We will provide more details on our regularly scheduled quarterly earnings conference call.’

Despite the CFO resignation and disappointing pre-earnings warnings, partner Jay Gordon, vice president of sales at Plano, Texas-based Enterprise Mobile, said he remains optimistic about the future of MobileIron, citing the Mountain View, Calif.-based company's commitment to the channel, as well as customer interest in MDM capabilities.

"We continue to be very excited about our partnership with MobileIron and feel that they offer one of the strongest MDM platforms available," said Gordon. "In the first quarter of 2015, based on MobileIron’s strong commitment to the channel, we achieved strong revenue through the acquisition of new customers, growth of existing customers ... and [expansion of] existing customers who upgraded their current MobileIron environment to include enhanced features."

Over the past few years, MobileIron has faced increased competition in the security and mobile device management market, as an array of bigger technology companies such as Microsoft, IBM and BlackBerry intensify their EMM and security solution efforts.

The company will report earnings April 30 after the market's close.

PUBLISHED APRIL 23, 2015