RealTime IT News

Egghead Replaces CFO

Egghead.com Inc., its stock opening this morning only 15 cents above its 52-week low of 50 cents a share, said it is beefing up its senior management team -- adding a new chief financial officer as well as a senior VP for marketing.

Earlier this month, the Menlo Park, CA-based Internet retailer of computers, software and other technology products products on the Internet, which at one-time was a chain of real-world stores, laid off 12 percent of its staff. The 77 jobs were cut in an effort to turn a profit by the fourth quarter.

The company, which snagged a $20 million credit line from International Business Machines Corp. on March 7, said the staff additions support the company's focus on the Small- to Medium-sized Business (SMB) community and its climb toward profitability.

Egghead.com said that CFO John Labbett is leaving "to pursue a new opportunity closer to his home in Los Angeles." He was credited for helping to secure the IBM deal.

Mark C. Shepherd was hired as the new CFO. Most recently, he served as managing partner, finance and CFO of 54th Street Partners, a management consulting company he co-founded in 1999. Prior to that, he served as CEO and COO for YES! Entertainment Corp., SVP finance and operations for Einstein/Noah's Bagel Corp., and CFO of Lewis Galoob Toys.

Also joining Egghead.com are Robert Islinger, senior vice president of marketing; Eileen Charlton, controller and vice president of finance; and Gordon Viggiano, vice president of direct sales, a new position.

Islinger has experience as senior vice president of marketing, advertising, and promotions for Office Max Inc. and senior vice president of strategic planning and marketing for Payless Cashways Inc.

Egghead reported a fiscal 2000 net loss of $62.2 million on revenues that were down 12 percent to $478.8 million. The stock at mid-morning was trading at 62 cents a share, down about 9 percent.