Terra Lycos Confirms CEO Resignation, Tops Fourth-Quarter Estimates

Terra Lycos(TRLY Quote - Cramer on TRLY - Stock Picks) confirmed the widely rumored resignation of its chief executive this morning, along with reporting fourth-quarter losses that were narrower than analysts expected.

Shares of the Internet service provider, which was created by the merger of Lycos and Terra Networks three months ago, recently slipped 75 cents, or 4.6%, to $15.56 in trading on the Nasdaq. The 52-week high is $145.25, while the low for the year is $9.06.

Terra Lycos said CEO Bob Davis, one of its largest shareholders, resigned and has agreed "to accept the key advisory role of vice chairman." Davis will also consult on strategy and continue to serve on the company's boards of international joint ventures. The company named Executive Chairman Joaquim Agut as its new top dog.

Davis, who was CEO of Lycos, said in a separate statement that he would join venture capital firm Highland Capital Partners as a partner. Rumors of the pending resignation started as early as last October when he sold 3.5 million shares, which led to a fall in the company's stock price.

Terra Lycos also said Chief Financial Officer Ted Philip will "transition to a new senior executive role" in charge of strategic planning and mergers and acquisitions. Elias Rodriguez-Vina has joined the company as its new financial chief.

Separately, Terra Lycos reported a narrower-than-expected fourth-quarter loss, before interest, taxes, depreciation, amortization and one-time charges, of $96 million, or 17 cents a share, compared with a loss of $42.6 million, or 9 cents a share, a year ago. The figures are the company's first results since Terra Networks acquired Lycos. Eight analysts polled by First Call/Thomson Financial called for a loss of 22 cents a share in the latest period.

The company, which maintains corporate headquarters in Barcelona, Spain, and operating headquarters in Waltham, Mass., said revenue increased 76% to $164 million from $93.3 million a year ago. For comparative purposes, the figures are presented as if Terra Networks had acquired Lycos on Jan. 1, 1999.