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News > Technology
Covad CEO ousted
November 1, 2000: 8:11 a.m. ET

Broadband services company chief resigns after disappointing 3Q results
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NEW YORK (CNNfn) - Troubled broadband services provider Covad Communications Group Inc. announced the resignation of its chairman and chief executive Wednesday, two weeks after announcing dismal third-quarter results.

graphicRobert Knowling stepped down from his chief executive position after Covad  (COVD: Research, Estimates) management said it "determined that new executive leadership would be in the company's best interest."

Under the helm of Knowling, Covad reported a third-quarter loss of $189.9 million, or $1.22 a share, compared with a loss of $54.1 million, or 47 cents, a year earlier. Wall Street analysts expected a loss of $1.18 a share.

graphicCovad named founder and former CEO Charles McMinn as its new chairman and Frank Marshall, a director of the company, as its interim chief executive officer.

The high-speed Internet access provider saw shares plunge 59 percent on Oct. 18 after it said nine of its partners were having trouble paying bills, contributing to a 15 percent loss in revenue in the third quarter.

Santa Clara, Calif.-based Covad's stock tumbled to $3.50 a share and is down 94 percent since March 1, when it closed at $66.25.

Covad stock rose 9 cents to $5.38 in before-hours trading Wednesday.

--Reuters contributed to this report graphic

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.