Covad CEO ousted
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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.
Robert 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.
Covad 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
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Covad
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