Open Market Inc. (Nasdaq: OMKT) fell 41/64 to 7 15/64 after e-business software company reported a second-quarter loss before a special item and said its president resigned.
Open Market said revenue for the quarter rose to $26.5 million from $20.6 million (US$) in last year’s second quarter, while the loss, before an investment gain, widened to $7.4 million, or 16 cents per share, from $3.7 million, or 9 cents. Including a $12.1 million, or 25 cent-per-share, gain from the company’s investment in a subsidiary acquired by Cisco Systems in May, net income totaled $4.7 million, or 10 cents per share.
The Burlington, Massachusetts-based company said growth in the quarter was slower than expected, due in part to a shortfall in revenue from sales and services related to its Transact order management product. A reorganization of North American sales operations also led to lower sales in the U.S., Open Market said, adding that a new vice president for North American sales, Ken MacDonald, is working to address the division’s problems.
Open Market also said its president and chief executive officer Ron Matros resigned, though the company did not give a reason. Harland LaVigne, a director, will fill in while a search for a replacement is underway.