In connection with the sale of its 10 percent equity investment, Wall Data will receive $4.6 million in cash and recognize a $2.9 million nonoperating gain in the company's second fiscal quarter ending October 31, 1999. Wall Data will continue to be a licensee of DataChannel's technology.
As previously reported, amid sluggish revenues and the lack of support for his interest in the corporate portal market, John Wall, chief executive and founder of the company that bore his name, has resigned.
The Wall Data executive has left the company to pursue other interests, according to a statement issued this week.
The company's board of directors named Kevin Vitale, president of the Rumba business and formerly chief operating officer of Wall Data, as the new president of Wall Data.
Vitale said in a statement that today's move is further indication of the company backing away from the corporate portal market.
"The sale of this investment yields a significant cash return on our investment and is consistent with our decision not to pursue the corporate information portal market. We consider DataChannel a strong strategic partner as we continue to focus on PC and Web-to-host access solutions."