Tech Industry

Stamps.com slips past 3Q forecasts, names interim CEO

Stamps.com posted a smaller-than-expected loss in its third quarter Tuesday and named Bruce Coleman as its interim CEO.

Stamps.com (Nasdaq: STMP) posted a loss of $38.5 million, or 80 cents a share, on sales of $4.2 million.

First Call Corp. consensus expected it to lose 85 cents a share in the quarter.

Coleman said the massive layoffs announced last week would go a long way toward regaining credibility on Wall Street.

The stock closed up 38 cents to $3.94 ahead of the earnings report.

"We have taken aggressive steps to reduce expenses and focus on building a profitable business," Coleman said in a prepared release. "Although we have implemented some extensive reductions in headcount, we plan to continue to provide excellent customer support and integrated, easy-to-use Internet Postage service."

The company said it expects to lower its quarterly cash burn through the recent reduction in its headcount, more focused marketing and other cost-cutting programs. The 40 percent reduction in headcount, roughly 240 employees, is expected to result in cost savings of approximately $30 million annually.

Stamps.com expects to take an unspecified, one-time restructuring charge in the quarter. It also expects to cut its expected 2001 sales and marketing expenditures by half or more from current expectations.

Prior to taking the Stamps.com post, Coleman served as CEO at number of companies including Boole & Babbage, Information Sciences and Walker Interactive Products.

Last quarter, Stamps.com posted a loss of $34.4 million, or 72 cents a share, on sales of $3.7 million.

The stock rallied up to a 52-week high of $98.50 in November before crashing to a low of $2.31 earlier this month.

The four analysts following the stock rate it a "buy."