Dallas-based Applied Digital Corp. (NASDAQ:APLD) announced a reshuffle in its executive team, with Saidal Mohmand taking over as Chief Financial Officer (CFO) effective today. The transition follows the company's board decision on October 8, 2024, and Mohmand's appointment was contingent on the successful completion of customary checks, which have been satisfied as of today.
Mohmand, 34, previously served as the company's Executive Vice President of Finance since September 2021 and played a key role in leading financial strategy and capital market initiatives. His experience includes a tenure as Director of Research at 272 Capital, an investment advisory firm specializing in technology hardware, software, and service companies, and a role at B. Riley Asset Management following its acquisition of 272 Capital.
David Rench, who has been the CFO since March 2021, transitions to the role of Chief Administrative Officer as part of the management updates. Rench's employment agreement was amended to reflect this change but retains its original terms.
As part of the executive changes, Wes Cummins (NYSE:CMI), the company's CEO and Chairman, entered into a new employment agreement on October 10, 2024, which includes an increased base salary and performance bonus structure, with a term ending October 10, 2027, subject to automatic extensions.
Mohmand's compensation as CFO includes an annual base salary of $475,000, eligibility for an annual performance bonus with a target amount of 75% of his base salary, and equity awards. The agreement also provides for severance benefits and contains customary non-competition and non-solicitation covenants.
The company's press release, which serves as the source of this information, indicates that there are no familial relationships between Mohmand and any of the company's directors or executive officers, nor are there any material interests in any related party transactions that would require disclosure.
In other recent news, Applied Blockchain Inc disclosed a 67% revenue surge in its fiscal first quarter 2025, reaching $60.7 million. This growth was primarily fueled by robust performance in the company's data center hosting and cloud services segments. However, the firm also reported an adjusted net loss of $21.6 million. Analysts at Lake Street Capital Markets and Craig-Hallum have raised their price targets for Applied Blockchain, citing the company's progress on construction, particularly in the Dakotas, and its ability to secure leases swiftly.
In addition, Applied Blockchain is nearing the completion of a high-performance computing lease with a major hyperscaler, which is currently 98% finalized. This development was highlighted by analysts from both Needham and Craig-Hallum. The company has also announced strategic investments and progress on its Ellendale HPC campus construction, with CFO David Rench transitioning to Chief Administrative Officer and Saidal Mohmand stepping in as the new CFO.
InvestingPro Insights
As Applied Digital Corp. (NASDAQ:APLD) reshuffles its executive team, InvestingPro data and tips offer additional context to the company's financial landscape. The company's market capitalization stands at $1.63 billion, reflecting its position in the computer processing and data preparation services sector.
InvestingPro Tips highlight that analysts anticipate sales growth in the current year, which aligns with the company's strategic management changes. This expectation is supported by the impressive revenue growth of 124.03% over the last twelve months, reaching $189.96 million. The company's strong performance is also reflected in its stock price, with a remarkable 200.2% return over the past six months.
However, investors should note that Applied Digital is not currently profitable, with a negative operating income of $90.86 million in the last twelve months. This aligns with another InvestingPro Tip indicating that analysts do not anticipate the company to be profitable this year.
For those interested in a deeper analysis, InvestingPro offers 13 additional tips for Applied Digital, providing a more comprehensive view of the company's financial health and market position.
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