Redback CEO quits

May 21, 2001: 5:45 p.m. ET

Company founder will serve as interim CEO during search for replacement

NEW YORK (CNNfn) - Redback Networks Inc. on Monday said Vivek Ragavan has resigned his position as the company's president and chief executive officer.

The San Jose, Calif.-based firm, which makes high-speed data-networking equipment, said its chairman, Pierre Lamond, will act as interim CEO until a suitable replacement is found.

Lamond, a venture capitalist at Sequoia Capital who helped found the company in 1996, also indicated that Redback remains on track to meet Wall Street's lowered financial expectations for the company.

"The current business and the product schedules continue to be on track with the guidance that we have previously given," Lamond said in a statement. "Of course we continue to operate in a very uncertain business environment as do all of our competitors."

Analysts are generally expecting Redback to post an operating loss of 10 cents per share during the quarter ending in June on sales of roughly $91 million, according to a survey conducted by First Call.

Redback said it has begun a search for a new president and CEO. During the interim, the company has seated an operating committee, consisting of four of its most senior executives, to manage the day-to-day operations.

Shares of Redback (RBAK: up $1.01 to $19.00, Research, Estimates) rose $1.01 to $19 on Nasdaq ahead of the news, which was released after the closing bell. They fell 70 cents to $18.30 in extended-hours trade.