UPDATE at 4:25 ET....UPDATE 1-InfoSpace announces management shake-up (Recasts, updates with details, comment, background)
nasdaq.com
BELLEVUE, Wash., Jan 22 (Reuters) - InfoSpace Inc. <INSP.O>, the once-high flying provider of content and services to Web sites and wireless devices, on Monday announced a management shake-up that included reinstating founder Naveen Jain as chief executive.
Jain, who handed the reins to cellular telephone industry veteran Arun Sarin last April, said he would take back control of the Bellevue, Wash.-based company due to Sarin's desire to spend more time with his family in the San Francisco area.
In addition, InfoSpace's chief accounting officer, Tammy Halstead, would replace Rand Rosenberg as chief financial officer, while general counsel Ed Belsheim would become the chief operating officer.
Belsheim succeeds Russell Horowitz, who was chief executive of Web site network operator Go2Net before the company was bought by InfoSpace last year.
InfoSpace, which has tumbled about 95 percent from its year high of $138-1/2 last March, fell $1-25/32, or 20 percent, to $7-1/8 in mid-afternoon trading on the Nasdaq following the announcement.
Jain tried to reassure analysts that the moves would not distract the company in its drive to be a major Internet and wireless player.
"At first glance, it seems like there are lots of changes in management. But the facts are that very little will change from the perspective of the business and employees," Jain said in a conference call.
Sarin would focus on InfoSpace's growing wireless business and international strategy from his position as vice-chairman, Jain said.
"He could not sustain his pace as InfoSpace's CEO and meet his family obligations," Jain said. "What we need are people who are going to be here working 16 hours a day, seven days a week," Jain said.
Jain declined to comment on the company's earnings outlook ahead of its scheduled Jan. 29 fourth-quarter financial results report.
InfoSpace, which supplies Web sites with things like Yellow and White Pages directories, maps, news and stock quotes, last month reiterated its guidance for fourth-quarter revenues of $66 million, and quarterly pro forma net income of $4.9 million.
((Scott Hillis, Seattle bureau, 206-386-4848; scott.hillis1@reuters.com))
REUTERS
Rtr 16:25 01-22-01 |
