Opt-in email marketing service NetCreations Inc. said that chief
financial officer Gary Sindler will resign from the company on August 15, to
pursue personal interests in his native Baltimore.
The announcement triggered a ripple in the company’s stock price, which
closed Thursday at $50.88 but was down about 15 percent to $43 3/16 by noon
The news follows the departure last month of NetCreations’
president and chief operating officer Mitchell York. It was
only January when York was appointed to the post, but, on June 2, he stepped
down to assume the position of director. Chief executive officer Rosalind
Resnick assumed York’s duties, which she had performed before his
Although Sindler attributes his departure to personal reasons, the decision
to leave, paired with York’s departure, could point to an unstable
management situation at the e-mail list manager and broker. This instability
could potentially shake investor, and client, confidence in the company.
Resnick, however, says the departures are wholly unrelated.
“There is no connection at all between Mitch’s departure and Gary’s
departure,” said Resnick. “There is nothing wrong with our company.”
Resnick says York, who had been on NetCreations’ board of directors before
he took the president and COO job, had stepped in to help Resnick put
together a stronger management team, after the company had its IPO.
“Once he helped me put together the management team — and I consider it to
be a very strong management team — he decided to pursue other
alternatives,” said Resnick. “Mitch has long been a close advisor to the
company, and he will continue to be.”
In an interview with atNewYork.com,
the latest to leave, Sindler, said he wants to devote more time to his
fiancee and family. “I’ve been commuting for the last year and that doesn’t
do wonders for a personal relationship.”
While Sindler admitted that the departure could be viewed as an indicator of
a company headed for the rocks, he called NetCreations, which sells opt-in
email lists for about 20 cents per name, a strong and solid company that has
been making money from day one.
Its latest quarterly earnings are due to be released on July 20. “The
day-traders heard the announcement and are nervous today,” added Sinder.
“But the institutional investors understand we have a solid company and that
there’s nothing wrong with our business model.”
Robert Mattes, NetCreations’ vice president of finance, will serve as
interim CFO until a replacement is found. Mattes’ spent six years in the
audit practice at KPMG and four year in
the insurance industry. Sindler said he will be available as needed after
his departure. NetCreations’ clients include Dell, J.
Crew, Ziff-Davis and internet.com (internetnews.com’s parent
company), and the company has agreements with Web site operators like CMPnet and Regards.com to sign up users who wish to
receive e-mail ads.