Rackable whacked after sales exec splits

Rackable Systems' vice president of worldwide sales has left the company and investors aren't happy. According to a regulatory filing, Rackable's Thomas Gallivan has resigned effective Jan.

Rackable Systems' vice president of worldwide sales has left the company and investors aren't happy. According to a regulatory filing, Rackable's Thomas Gallivan has resigned effective Jan. 7.

Shares were down nearly 7 percent on the news. Rackable provides high-density computer servers and high-capacity storage systems for data centers. Amazon, Microsoft and Yahoo accounted for 60 percent of the company's 2005 revenue. Gallivan gets a severance payment of $171,000 spread over 3 months. Rackable said its domestic sales operation will be handed off to president Todd Ford. Thomas Barton, CEO, will handle international sales.

It remains to be seen what impact Gallivan's departure will have on Rackable's customers. However, as long as Internet giants continue to build big data centers Rackable should be fine.

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