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Technology Stocks : NewKidCo International (OTC:NKCIF) (TSE:NKC) -- Ignore unavailable to you. Want to Upgrade?

To: esecurities(tm) who wrote (3661)	11/10/1999 9:47:00 PM
From: SemiBull	Read Replies (1) \| Respond to of 4231

Mattel Says Learning Co. Executives Depart By Sarah Tippit LOS ANGELES (Reuters) - Toymaker Mattel Inc. on Wednesday said two top executives of its ailing software division left the company on the heels of a disastrous third quarter in which their division reported $105 million in unexpected third quarter losses. A spokesman for El Segundo, Calif.-based Mattel, famous for Barbie dolls and Hot Wheels, said Michael Perik, chairman of The Learning Co. software group, and Kevin O'Leary, president, left ``to pursue other interests.' But it was widely believed among industry watchers the two were ushered out the door. Mattel said it has begun to search for a new head of its interactive division, where the Learning Co. had been housed since Mattel bought it last May for $3.5 billion. Late last month, Mattel reported a $105 million third-quarter loss at the software unit, which had been expected to contribute a profit of $50 million. Mattel attributed the shortfall to a decision not to pursue a planned licensing deal and higher-than-expected product returns. The Learning Co.'s problems led Mattel's stock to a low of 11-11/16 earlier this year, and some shareholders have called for Mattel Chief Executive Jill Barad to resign. Mattel shares were unchanged at 13-3/4 at the close of New York Stock Exchange trading Wednesday. The company said the third-quarter losses were unexpected and had not been uncovered during due diligence prior to the acquisition of the Learning Co. ``In looking back there were no issues in year-end '98 or the first two quarters of '99,' said Mattel spokesman Glenn Bozarth. Prior to the losses, Mattel was trying to extend some of its widely recognized brands like Barbie and Hot Wheels into special software and computer products using the Learning Co. Mattel intends to broaden its scope from a traditional toymaker to a family products concern offering educational products, software, interactive games and an online presence. Barad said last month that she wasn't made aware of the losses until late in the third quarter when the Learning Co. unit underwent a detailed audit in preparation of a move of its financial operations from Cambridge, Mass., to northern California. Since then she has faced angry shareholders calling for her ouster and a spate of class-action lawsuits connected with the losses. Still, she has stood by the acquisition, saying it would eventually become very profitable. Bozarth said the company continues to support Barad's efforts to turn the unit around. ``She has the full support of the board,' he said. Mattel also said on Wednesday that Francesca Luzuriaga has been named chief operating officer of Mattel Interactive, the division which includes all units of The Learning Co., Mattel Media and the company's Intel Play venture. Luzuriaga has been executive vice president-worldwide business planning and resources for Mattel since 1997. In addition, the company said it is promoting two software executives to oversee the growth of its portfolio of interactive brands. Amy Boylan will now become senior vice president-Entertainment, and Cindy Hudson will become senior vice president-Productivity/Learning. One analyst Wednesday said she wasn't sure that problems would be over with the management changes in the interactive division. ``This is a time will tell situation,' Bear Stearns analyst Marina Jacobson said. ``This is not a quick fix. They really have to prove they can generate the returns they talked about before.'