Scot Wingo, the co-founder and CEO of ChannelAdvisor, has resigned that post and has been replaced by Chief Operating Officer David Spitz. The news was disclosed Monday evening after ChannelAdvisor reported a first-quarter loss of $9 million.
Wingo, who is one of the Triangle’s best-known entrepreneurs and is an active investor in startups, was named executive chairman by the ChannelAdvisor (NYSE: ECOM) board.
The changes come almost two years to the day that Wingo and Spitz led ChannelAdvisor to a Wall Street IPO.
Its stock plunging in value and its forecast for revenue indicating another decline this quarter, ChannelAdvisor’s board took action last week.
Shares in ChannelAdvisor, which launched in January 2001, peaked at $21.75 on Jan. 9. After the company forecast declining sales in a statement on Jan. 12, the stock nose-dived more than 50 percent and has yet to recover. ChannelAdvisor shares closed Monday at $10.02.
Just a year ago in March 2014, ChannelAdvisor shares peaked at $48.88. It has some 500 employees.
The changes actually were made on April 28 at a board meeting, ChannelAdvisor disclosed in a filing with the Securities and Exchange Commission. The changes took effect with the formal filing of the SEC report.
Spitz also was named as a member of the ChannelAdvisor board, which was expanded to seven in order to accomodate his addition.
“I’m honored to have been appointed to serve as the Chief Executive Officer of ChannelAdvisor,” Spitz said in a statement.
” I strongly believe in the solid fundamentals driving opportunities for the company. I am committed to the long-term success of ChannelAdvisor and look forward to expanding on the leadership position we have established in the marketplace.”
Wingo made clear in his statement that he would remain actively involved in the company.
“I look forward to remaining closely involved in driving ChannelAdvisor’s role in the complex e-commerce industry both internally and externally, and making further contributions to our products and strategy in my new role,” Wingo said.
“I am excited about David’s appointment as CEO. I believe David is a strong, dynamic leader, with the drive to lead our organization forward, helping us create long-term value for our customers, employees and shareholders.”
ChannelAdvisor has been losing money, however. It reported a loss of 36 cents per share. Losses, adjusted for stock option expense, were 24 cents per share. The results exceeded Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for a loss of 34 cents per share.
Revenue also topped expectations at $22.6 million. Analysts had forecast $21.6 million.
The company did offer financial guidance for the current quarter that would be $21.4-$21.8 million, thus predicting a further decline in sales.