RealTime IT News

Netzee Shuffles Management Deck

Less than a week after unveiling lower-than-expected revenues for 2001, online financial services provider Netzee Inc. accepted resignations from President and General Manager Catherine Silver and Director of Marketing Paul Golden.

Chief Executive Officer Donny R. Jackson will assume Silver's duties and Compass Bank's Dan Anderson will be put in place as a senior vice president in charge of all sales.

The changes comes on the heels of dismal financial news, which the firm attributed to a slowdown in sales because of weak market conditions and the underperformance of certain acquisitions.

Netzee estimated its 2001 revenues to be between $32 million and $36 million, a far cry from where previous analyst estimates pegged the firm's revenues at $55 million to $58 million.

Going forward, the company hopes to add 300 new financial institution customers on its retail Internet banking products and about 150,000 new retail customers in 2001. But it will need additional funding to do so, according to newly-appointed president Jackson.

"We remain confident that with more than 900 financial institutions contracted on one or more of our Internet products, we have an established franchise that will enable us to obtain the necessary funding," Jackson said.

Despite Jackson's optimism, Robinson-Humphrey last week downgraded Netzee from "buy" to "neutral" after lowered guidance last week.

The brokerage firm noted in its downgrade that overall development of Internet banking market has been slow to evolve and that delayed profitability creates concern during a time when Netzee needs $10 to $15 million of capital by December to continue its operations.

Netzee's stock was down 6 percent to 94 cents a share at midday trading Monday.