Theglobe.com, which offers free Web-page building services, is the latest company to say it will not meet revenue expectations for the third quarter, ending Sept. 30. Shares of theglobe dropped 22% to an all-time low of 78 cents at closing Sept. 29. In first-day trading two years ago, theglobe
shares closed at $31.75. For the third quarter, theglobe expects revenue between $6.1 million and $6.4 million. A restructuring plan includes beefing up sales staff to focus on ad-client relationships, but does not at this point include any staff cuts. The company employs about 225. As part of the restructuring plan, TheGlobe named Mark Martiak VP-sales, from VP-media sales-Northeast, CMGI's Engage Media, New York. TheGlobe said it plans to add senior sales reps in several offices, including Boston, Detroit, Los Angeles, New York, and San Francisco, and will open a sales office in London to expand sales into Europe. Third-quarter results will be released at the end of October. CEO Chuck Peck, who joined theglobe in August, said in a statement the company is positioned to be "on a clear path to profitability as we enter 2001.''
Copyright October 2000, Crain Communications Inc.