Covad chief resigns. Slowly and steadily ADSL is retreating.
Covad chief resigns
By Victoria Burnett in New York
Published: November 1 2000 19:08GMT | Last Updated: November 2 2000 01:25GMT
Covad Communications, which provides high-speed internet access over digital subscriber lines, on Wednesday said Robert Knowling, the company’s chief executive and president, had resigned in the wake of a precipitous drop in the company's shares and disappointing third-quarter results.
Covad said in a statement that “recent events affecting Covad’s business” had led Mr Knowling and the company’s board to conclude a change of top management would be “in the company’s best interest”.
Frank Marshall would serve as chief executive until a replacement can be found, the company said, while Charles McMinn would take the post of chairman, which he held for two years until 1999.
Some DSL providers, which allow high-speed internet access over regular copper telephone lines, have run into trouble lately as telecommunications companies scale back plans for building fast-access internet networks and capital for funding projects has slowed to a trickle.
Covad last month disappointed Wall Street with wider-than-expected losses in the third quarter, saying that some of the internet service providers that use its networks had been unable to make payments. On the same day, Copper Mountain, another DSL provider, warned that sales and profits would decline in the fourth quarter due to slack demand.
Shares in Covad rose 8 per cent on Wednesday’s new to $5.69. They have fallen steadily since March, when they peaked at $66.63, and dipped as low as $3.38 after the release of its third quarter results |
