COO Resignation Lifts MyPoints

MyPoints.com (Nasdaq: MYPT) was up 1/32 at 1 7/32 early Friday after the company said its chief operating officer resigned.

The San Francisco, California-based company, which operates online customer-loyalty programs, said president Layton Han will take responsibility for the company's day-to-day operations after COO Chaz Berman leaves "to pursue other interests."

MyPoints is continuing to look for a new chief executive to replace Steve Markowitz, who resigned in November as the company reported a loss for the third quarter.

MyPoints said it is "considering several highly qualified candidates," and expects to announce a new CEO in the first quarter of 2001.

The company said making the president responsible for operating duties "further streamlines its management functions to provide better focus on its core business."

MyPoints reported a third-quarter loss before charges of US$12.8 million, or 36 cents per share, compared with a loss of $8.3 million, or 40 cents, in the year-earlier quarter. Revenue rose to $14.5 million from $7.0 million. After charges, the company lost $23.4 million, or 66 cents per share, compared with a loss of $9.8 million, or 47 cents.

MyPoints had expected the loss, saying it was suffering the effects of a sluggish environment for Internet advertising. The company also laid off 120 employees, or 29 percent of its workforce, in a reorganization aimed at saving $8 million per year.

The company said it had $125 million in cash, cash equivalents, and short-term investments on hand at the end of the quarter, giving it "sufficient capital resources to grow and achieve profitability."