Masimo Names Interim CEO As Activist Board Members Step In; Joe Kiani Exits Amid Legal Clash

Masimo Corporation MASI shares are trading higher on Wednesday.

Michelle Brennan, a current member of Masimo’s Board, has taken on the role of interim Chief Executive Officer, after Joe Kiani announced his resignation as CEO.

In a regulatory filing, the company disclosed that, on September 19, Kiani filed a claim in California state court relating to his employment agreement, as amended, seeking declaratory relief that he had validly terminated his employment for “Good Reason.” Masimo said its Board is evaluating Kiani’s notice as well as his lawsuit against the company.

In addition, Darlene Solomon and Bill Jellison, both Politan Capital Management nominees who were elected by shareholders at the Annual Meeting held on September 19, have officially joined the Board. Joe Kiani was not elected to board at the meeting.

Earlier, Masimo’s annual meeting of stockholders, previously scheduled for July 25, was moved to September 19. Masimo had filed a lawsuit in federal court against Politan and its founder and CIO Quentin Koffey. Koffey is also a member of the Masimo Board.

Also, the company said its Board remains committed to the previously announced review of alternatives for both the consumer audio and consumer healthcare businesses. They are eager to share updates soon about value-creation initiatives, including the ongoing strategic review.

Also Read: Patient Monitoring Device Maker Masimo Contemplates Separation of Consumer Business As Activist Investor Seeks Expanded Board Presence

For the third quarter of 2024, Masimo reiterated its non-GAAP financial guidance previously provided on August 6, 2024.

The company sees FY24 revenues of $2.085 billion to $2.135 billion versus the $2.1 billion estimate. Masimo sees FY24 earnings per share of $3.80 to $4.00 versus $3.88 estimate.

“We are excited about the strong momentum of the business and its future prospects for growth. We look forward to providing more details on the upcoming third-quarter earnings call next month,” said Chief Financial Officer Micah Young and Chief Operating Officer Bilal Muhsin.

Masimo expects third-quarter revenue to be between $495 million and $515 million, compared to an estimate of $502.19 million and anticipates adjusted EPS of $0.81 to $0.86 versus the $0.84 estimate.

Price Action: MASI shares are trading higher by 5.55% to $133.19 at last check Wednesday.

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