PSINet (PSIX) , an Internet service and Web-hosting company, was down 40.1% in preopen Island trading after it announced a reorganization that includes the resignation of its president, Harold Willis.

The company also reported a third-quarter loss of 95 cents per share before charges, better than the Street's estimate of a loss of $1.28. But PSINet said fourth-quarter results could fall below expectations. The company also said it would determine whether it should remain independent or seek strategic alternatives.