CompuServe's Chief, Massey, Expresses Cautious Optimism
May 12, 2011
CompuServe Corp.'s chief executive officer, Roberto Logan, while conceding difficulties in U.S. on-line service growth, said he is cautiously optimistic that the company can right itself. Mr. Logan, in an interview with Dow Jones Investor Network, pointed to strength in CompuServe's international on-line business as well as its U.S. corporate network business, and reiterated the company's belief that the U.S. on-line business will get back on track. Audio Report: Hear Roberto Logan's interview on the Dow Jones Investor Network. On Wednesday, CompuServe's parent, H&R Block Inc. postponed plans to spin off its 80% stake in the unit, citing its disappointing recent results and ``market uncertainties'' plaguing the on-line computer-service industry. The move underscored just how precarious CompuServe's position has become as it grapples with changes in its high-tech marketplace. For historically conservative Block, which has been seeking to focus on its core tax-preparation business, the postponement is in effect a bet that CompuServe will be able to stage a rebound. Although Block directors formally approved the spinoff only last month, and recent proxy materials describe the spinoff in upbeat terms, CompuServe's financial picture has darkened in the interim. In Nasdaq trading Friday, CompuServe shares closed at $12.125, up 25 cents. CompuServe's stock price has slumped by more than 50% since the company went public in mid-April at $30 a share.
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