Shares of Stamps.com were off as much as 17 percent at one
point today after Chairman and CEO John Payne stepped down and the company
issued a statement that among other things said it would “explore … strategic
alternatives for the company.”
Former U.S. Postmaster General Marvin Runyon was named interim chairman and
the company, a provider of Internet mailing and shipping services, said a
permanent replacement for Payne would be sought. The company also said Tom
Bruggere has resigned as a director.
At mid-day the stock was trading at $2.62, down about 10 percent. Its 52-week
high is $98.50. Just last week Stamps.com’s president returned to his role as
a board member and the chief financial officer and and comptroller bailed
out.
Meanwhile, Goldman Sachs issued a report that said although the company is
“leading in the online delivery of value-bearing documents, such as postage
and tickets … Stamps is losing cash; we will watch closely the rate and cost
of acquiring customers to gauge its path to profitability.”
Runyon did his best to put a finger in the dike, saying in a statement that
“Stamps.com is well-positioned to continue its leadership role in the mailing
and shipping market. We are
confident of the viability of our long-term business model … Our sound
financial standing of $300 million of cash-on-hand provides us the resources
to accomplish our business objectives…”
“We have a 70 percent share of the customers using Internet postage, and
strong initiatives in enterprise and e-commerce areas,” Runyon added.
Payne will remain on the Stamps.com board.
The company, which has never made any money, is being sued for patent
infringement by mailing machines giant Pitney Bowes. The company has called
the suit baseless. Stamps.com operates three business units focused on
providing e-services allowing small businesses, large corporations and
e-commerce companies to manage their mailing, shipping and returns operations.
The company’s statement said: “The Executive Committee of the Board of
Directors will immediately engage in a search for a new chief executive
officer and chief financial officer, as well as explore other strategic
alternatives for the company.”
Is the Postage About Due at Stamps.com?
