PSINet loses president and share value

PSINet, the global web-hosting company, lost its president as shares dropped over 50 per cent after announcing lower-than-expected losses for its third quarter.

The company announced a reorganisation and the resignation of president and COO Harold Wills. It warned that fourth quarter results could be below expectations. The company will consider remaining independent or seeking strategic alternatives. The shares plunged to just over $3 on release of the news. On an operating basis the company posted a loss of $182m, or 95 cents a share, for the third quarter. Wall Street analysts had expected losses to hit over $1.25 per share. Revenues were $352.5m, up from $140.6m for the same period last year.