- Netignations: Network Associates Inc., the Santa Clara, Calif.-based software and computer-network security company, announced today that its three top executives have resigned, including chief financial officer Prabhat Goyal, chief executive officer William Larson, and president Peter Watkins. News of the resignations came shortly after the company warned it expects to report a surprising fourth-quarter loss, and a significant change of accounting methods.
Network Associates said it expects fourth-quarter revenue to come in between $55 million and $65 million, more than 25% lower than the amount it forecast in October. The company is expecting a loss from operations between $130 million and $140 million, which analysts say will not help recover confidence from sharp earnings shortfalls recorded in the first and second quarters of 1999.
In midday Wednesday trading, its stock was down more than 70 percent, to $3.31.
The company’s accounting change entails deferring the time it books revenue until after its distributors actually sell its equipment to end users. Network Associates said it would have a $120 million shortfall to revenue “associated with the company’s election not to replenish distributor sales made during the quarter and to take inventory returns as requested by distributors, leaving approximately $10 million of inventory in the distribution channel.”
Network Associates said Edwin Harper, a company director since 1993 and president of Manufacturing Technologies Inc., was named chairman, temporarily succeeding Larson until a permanent replacement is found. In 1999, Goyal earned $440,000, mostly from salary and bonus.
- Golden Boy: Financial services company Gold Bank announced yesterday that Rick J. Tremblay has been named chief financial officer and senior vice president. Tremblay will join Gold Bank from UBM Financial Corp., where he was vice president and controller. Tremblay is replacing David Phillips, the former Gold Bank controller.
- Trustin’ Tompkins: Tompkins Trusco Inc., an Ithaca, N.Y.-based bank, has appointed Francis M. Fetsko as chief financial officer and senior vice president, succeeding Richard D. Farr, who resigned on Dec. 14. Fetsko has worked as vice president and controller for the bank’s principal subsidiary since 1996. In 1999, Farr earned $106,000 in annual salary, $25,000 in bonus and $1,785 in other annual compensation. He took home another $46,456 from exercised options.