EarthLink CFO resigns
Barry Hall steps down today following yesterday's announcement of a $15 million round of financial backing.
The company said Hall is resigning to pursue other opportunities.
In the interim, Charles ("Garry") Betty, EarthLink's president and CEO, will have responsibility for all corporate financial functions. The company has initiated a nationwide search for Hall's replacement.
"Barry played an integral role as part of the team that guided the company through the preparations for its initial public offering and subsequent listing on Nasdaq," said Betty, noting that as CFO, Hall oversaw the company's raising of $57 million.
And Abhishek Gami, an analyst with Nesbitt Burns Securities, said Hall's departure is part of the natural transition of a growing business, noting that as companies expand, they need to make the transition to financial officers that hold the appropriate experience for each stage of growth.
Now almost a year after EarthLink's public offering, it is time to bring in someone who has initiated mergers and acquisitions, business developments, and strategic relationships, he said.
And as the Internet service provider walks its CFO out the door, it is less than one month past its snafu with the Securities and Exchange Commission, which sunk the stock almost 15 percent.
EarthLink stated in an SEC filing last month that its finances may run a bit thin, which raised concerns about the company's resources. It added that it expected losses to continue at least through the end of 1997. The company later revised its comments, saying the initial statement was just "being conservative."
However, Betty said, the incident didn't have any bearing on Hall's resignation. "It was a mistake, and then it was corrected."
Yesterday the company announced that it had secured $15 million through a private placement of unregistered shares of its common stock.
Betty said EarthLink will be one of the players that remain after industrywide consolidations take place. "We bought one ISP in April, and we have several small things in the wings--and we will continue aggressively buying as long as it makes financial sense."