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VerticalNet, Inc. (Nasdaq: VERT) fell 1.34 to 3.97 early Monday after the e-commerce software maker said chief executive officer Joseph Galli resigned to become president and CEO of manufacturing company Newell Rubbermaid.
Galli, who joined VerticalNet last July, is being replaced by Michael Hagan, chief operating officer and a co-founder of the company.
Analysts at Lehman Brothers, Prudential Volpe and Legg Mason reportedly lowered their ratings on VerticalNet following the news.
The move will be a "return to my roots in the durable goods industry," Galli said, adding that "VerticalNet remains the same incredible growth opportunity it was when I joined earlier this year, if not more so."
Hagan has had direct operational responsibility over the company's VerticalNet Solutions and NECX units. He has also directed VerticalNet's acquisition strategy and managed the sale of NECX to high-tech consortium Converge, Inc.
According to VerticalNet chairman Mark Walsh, Galli did a "great job" identifying key opportunities and "making the big-picture organizational changes necessary to address them."
Walsh also said Hagan's "solid industry relationships" will help the company grow.
"I have enjoyed watching the company I co-founded grow to become an industry leader," Hagan said. "This year brings several unprecedented opportunities for VerticalNet."
Outlining his goals for the company, Hagan said VerticalNet will continue to expand products and services offered by its online marketplaces, extend the "impressive growth trajectory" of VerticalNet Solutions through the delivery of "leading-edge applications," and work with Converge to develop their alliance.
As part of the NECX sale, VerticalNet received a seat
on the Converge board.
