CEO of Visual Networks resigns

fill-in is named

Company's former CFO will be interim chief

August 29, 2002|By Stacey Hirsh | Stacey Hirsh,SUN STAFF

Visual Networks Inc. of Rockville said yesterday that its chief executive has resigned and that Peter Minihane has been named interim CEO.

Elton King, the company's former president, CEO and director, resigned for personal reasons, the company said.

Minihane, who is also a company director, has held several positions at Visual Networks. Most recently, he was the company's chief financial officer and chief operating officer until he resigned in January for personal reasons.

"It was very unfortunate that he had to resign," said Todd Koffman, managing director of equity research for Raymond James & Associates in St. Petersburg, Fla.

But Koffman said he sees yesterday's announcement as very favorable.

"It's my view that he was an extremely strong CFO, so I welcome the company's decision to bring him back," Koffman said.

Visual Networks makes software and hardware to manage communications networks.

The company reported net income of $815,000, or 3 cents per share, for the second quarter that ended June 30. That's up from a net loss of $12.3 million, or 39 cents per share, for the corresponding quarter last year.

Visual Networks' revenue went down during the second quarter to $15.2 million from $20.3 million a year ago.

"We have worked very hard over the past 15 months to transform Visual Networks in ways that would ensure its long-term success," King, who joined the company in 2001 and helped it return to profitability, said in a statement.

In May, Visual Networks' stock moved from trading on the Nasdaq National Market to the Nasdaq SmallCap Market.

Visual Network's shares lost 6 cents yesterday to close at $1.09.

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