Theodore Tewksbury Named Velodyne CEO - Latest News

Velodyne Lidar Announces New Chief Executive Officer

A new CEO has been appointed at Velodyne Lidar. Theodore Tewksbury will assume the position starting November 10th, marking the latest leadership change within the sensor company this year.

Tewksbury’s Vision for Velodyne

During the company’s third-quarter earnings call, Tewksbury expressed his attraction to Velodyne, citing its position as the “undisputed lidar technology pioneer and market leader.” He highlighted his experience in scaling innovative technology businesses and driving financial growth, qualities he believes are crucial for Velodyne’s current needs.

Background of the New CEO

Previously, Tewksbury served as the CEO of Eta Compute, a developer of edge vision sensors. His resume also includes board memberships at Jariet Technologies and MaxLinear. Furthermore, he has held chief executive roles at Energy Focus, Entropic Communications, and IDT.

Recent Leadership Transition

Velodyne has operated without a permanent CEO since July, following Anand Gopalan’s departure after approximately 18 months in the role. Rather than immediately appointing a successor, the company established an “Office of the Chief Executive” comprised of several C-suite executives and an executive search committee.

Internal Challenges and the SPAC Merger

Gopalan’s departure followed a period of internal turmoil. This involved a dispute between the company’s founder, David Hall, and the board of directors. The situation worsened around the completion of Velodyne’s $1.8 billion SPAC merger with Graf Industrial Corp. last summer.

Founder’s Concerns and Board Nominations

Following the merger, David Hall stepped down, and his wife, Marta Thoma Hall, was removed from her position as chief marketing officer after an internal investigation revealed “inappropriate” behavior regarding company processes and a lack of “respect, honesty, integrity, and candor.” Hall has since voiced his concerns, recently issuing a letter to shareholders and announcing his intention to nominate two new board members.

“I will not allow Velodyne Lidar to continue to stagnate under current leadership,” Hall stated, emphasizing his plan to propose “highly-qualified director candidates.”

Revised Financial Outlook

Velodyne has adjusted its full-year revenue guidance downward, now projecting between $60 million and $63 million. This is a reduction from the previous forecast of $77 million to $94 million.

Factors Influencing Revenue Adjustment

The decrease in projected revenue is attributed to the company’s transition into mass commercialization and customer demand for “consistency of performance,” as explained by CFO Drew Hamer during an investor call. He noted a shift from research and development purchases to demands for reliable product performance.

Nonrecurring Engineering Fees and Guidance

The company is experiencing difficulty in accurately forecasting nonrecurring engineering fees. Consequently, these potential contracts have been excluded from the guidance unless supported by signed agreements.

Reduction in Operating Expenses

Velodyne’s operating expenses have decreased significantly compared to the previous quarter. This is largely due to a substantial reduction in marketing and sales expenses, which fell to $6.5 million from $47 million in the second quarter.