Sprint Nextel Sticks a Fork in Forseehttp://www.fool.com/investing/value/2007/10/09/sprint-nextel-sticks-a-fork-in-forsee.aspx Dave Mock
October 9, 2007
Well, it sure didn't take long for the status of Sprint Nextel (NYSE: S ) CEO Gary Forsee to change from going to gone. Only days after rumors circulated that the board of directors was searching for a replacement, the company announced that Forsee will step down immediately while temporary management keeps the seats of chairman and CEO warm for a new leader.
Sprint Nextel's board members made it clear that they will be looking outside the company for new blood, someone who can "guide the company to achieve its full potential." The board agreed with some vocal shareholders that if the company was still struggling nearly three years after the merger, changes needed to be made.
And still struggling may be an understatement. Along with the announcement of Forsee's departure, Sprint Nextel prepared investors for a really bad third quarter. The company said it expects to post a net loss of 337,000 post-paid customers for the past three months. Along with that, the company acknowledged that it will fall short of its guidance for operating income before depreciation and amortization (OIBDA) and revenue in 2007.
The poor numbers mean that this likely won't be a happy holiday season for Sprint Nextel. While competitors Verizon Wireless (a joint venture between Verizon Communications (NYSE: VZ ) and Vodafone (NYSE: