Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : GST Telecom (GSTX) 4th quarter earning -- Ignore unavailable to you. Want to Upgrade?

To: silicon warrior who wrote (295)	2/8/2000 3:08:00 PM
From: Rob Preuss	Respond to of 369

[Jeffries & Co reiterates 'buy' rating on GSTX. 2/7/00.] Jefferies & Co. reiterates buy. Company sold 2.1M shares of its Global Light holding for $30 million pre-tax. cnetinvestor.com

To: silicon warrior who wrote (295)	2/11/2000 10:19:00 AM
From: Rob Preuss	Respond to of 369

Found this on the Yahoo! thread... Jan. 25 (The Columbian/KRTBN)--Following a disappointing second half of 1999, Joe Basile has stepped down as president and chief executive officer of GST Telecommunications. Tom Malone, GST's chief operating officer, will step in as interim CEO of the Vancouver-based company. Basile will remain on GST's board of directors. This morning's announcement was a surprise to analysts but comes on the heels of poor financial results and a retreat in GST's stock price. It is not clear if Basile was asked to leave or if he resigned of his own accord. "I think there were some indications that operations were not running as smoothly as would have been anticipated," said Dave Heger, a telecommunications analyst with A.G. Edwards. Basile joined GST in early 1997, first as president and chief operating officer. He took over as CEO in June 1998 after GST's board forced out company founder John Warta in a dispute over some of Warta's business ventures. Under Basile, GST redefined its operations to focus on providing phone, Internet and other telecommunications services to small and midsized businesses on the West Coast. GST invested hundreds of millions of dollars in building its communications network and amassed more than $1 billion in debt. Although the company continued to post big losses, GST dramatically increased revenues under Basile's leadership. Through the first nine months of 1999 GST's revenues were $224.9 million, up 98 percent over the same period the year before. In the second quarter of last year the company met a long-term goal and broke even on a key indicator of its financial performance. "Certainly it looked as if Joe Basile had the company going in the right direction in terms of growing revenues, improving cash flow results," Heger said. However, GST's revenues were stagnant in the third quarter of last year. Basile blamed extraneous operations left over from previous GST management for slowing growth, but investors were deeply disappointed in the company's performance and GST's share price plummeted. "Apparently as they got into the second half of the year things fell off track again," Heger said. "With these types of things the board was probably putting pressure on Basile to improve results and it sounds like there might have been some difference of opinion between Basile and the board." GST spokesman Steve Kuyatt said he didn't have any information on the circumstances of Basile's departure. He said GST will begin a search for a new CEO. Interim CEO Tom Malone has only been with GST for two months. Formerly CEO of Pick Communications, he was hired as GST's new chief operating officer last November. GST employs about 1,300 people, including 550 at the company's offices in Vancouver. This morning's shakeup was bad news to Frank Murphy, an analyst who follows GST for Wheat First Union in Virginia. "My opinion is rather negative," he said. Murphy said GST needs new leadership in its sales, marketing and financial departments, but not at the top. "Within the ranks of the senior management team Joe was the bright spot," Murphy said. "I view his departure as certainly a pretty significant negative." Investors apparently agree. In early trading this morning GST's share price fell more than 15 percent to 8 1/2. The stock trades on the Nasdaq exchange as GSTX.