DIGITAL INSIGHT PRESIDENT QUITS.Byline: Evan Pondel Staff Writer CALABASAS - Digital Insight Corp. announced the resignation of its president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. Tuesday Tuesday: see week. as the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the banking provider struggles to retain a once-robust customer base. A company spokesman said Dale Walker, 59, will leave the company for personal reasons by the year's end. Walker is also relinquishing re·lin·quish tr.v. re·lin·quished, re·lin·quish·ing, re·lin·quish·es 1. To retire from; give up or abandon. 2. To put aside or desist from (something practiced, professed, or intended). 3. his role as director of Digital Insight's board. John Dorman, chairman and chief executive officer, will handle Walker's responsibilities until a successor is found. ``I'm looking forward to assuming a more active role in operations. ... Moreover, we have moved quickly to address the client retention challenges,'' Dorman wrote in a printed statement. Those challenges have hurt Digital Insight in recent months, as competitors have taken advantage of what analysts say is the company's lack of insight. That translates into the company's failure to foster relationships with its clients. ``The company took their eye off the ball,'' said John Kraft John Kraft (born May 6, 1941) is an American politician. He is currently a member of the Democratic Party and a was candidate for Insurance Commissioner of California in the 2006 democratic primary. His occupation on the ballot was listed as Insurance Healthcare Consultant. , analyst with D.A. Davidson in Portland, Ore. ``Digital Insight was so focused on acquisitions that they neglected their existing customers and didn't realize the implications.'' To address client relations, the Calabasas-based company created a new senior vice presidency the office of vice president. See also: Vice earlier this month. The position's primary function is to develop procedures to enhance the company's overall client satisfaction and retention issues, Dorman said. Walker's resignation has been perceived as a move in the right direction for the company. Some, however, see Walker's exit as a sign of future weakness. Digital Insight shares declined 91 cents, or 8.3 percent, to close at $10.09 Tuesday on the Nasdaq market. Kraft said investors may not be enchanted en·chant tr.v. en·chant·ed, en·chant·ing, en·chants 1. To cast a spell over; bewitch. 2. To attract and delight; entrance. See Synonyms at charm. with the idea of a president's resignation when times are tough. ``Investors have had high hopes in this company and have lost confidence (when) the company could not perform as anticipated,'' he said. A weak economy has also factored into Digital Insight's woes. The company's clients are mostly smaller banks that haven't been able to weather economic turbulence turbulence, state of violent or agitated behavior in a fluid. Turbulent behavior is characteristic of systems of large numbers of particles, and its unpredictability and randomness has long thwarted attempts to fully understand it, even with such powerful tools as as well as their larger counterparts. For that reason, Digital Insight's clients have also dwindled away due to cost-cutting measures. The company reported that client deactivations were slightly higher than previously expected in the company's most recent quarter. Kraft said Digital Insight once was able to retain more than 90 percent of its customer base. That number has declined to 70 percent in recent months. Still, the company posted net income of $1.65 million in the third quarter, compared with a net loss of $9.94 million in the same period a year ago. Digital Insight's revenues increased 38 percent to $33.9 million from $24.5 million a year earlier. Glenn Greene, analyst with ThinkEquity Partners in Chicago, said the company is far from calling it quits quits adj. On even terms with by payment or requital: I am finally quits with the loan. [Middle English, probably alteration (influenced by Medieval Latin . ``They are still a leader in the field,'' he said. ``They are just facing a more challenging period right now.'' Since April, Digital Insight shares have lost more than 60 percent of their value. ``But while the stock is very cheap at the moment, I don't think the company's problems are going to go away quickly,'' Kraft said. |
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