Egreetings to Cut Staff by 34% Amid Losses, Ad Slowdown

Online card provider Egreetings Network Inc. announced the resignation of its chief executive and said it would cut 34% of its staff after a wider-than-expected third-quarter loss and slowdown in advertising business. The San Francisco-based company said its operating loss widened to $9.3 million, or 28 cents a share, from $8.8 million, or 54 cents, a year ago, when there were fewer shares outstanding. Revenue nearly tripled to $2.3 million from $803,000. Analysts on average were expecting a loss of 30 cents a share, according to First Call/Thomson Financial. The company said a slowing advertising environment led to restructuring plans, including the layoff of 60 employees and resignation of its president and CEO, Gordon Tucker. Andrew Moley, the current chief financial officer, has been named his successor and will also take a seat on the board. Egreetings shares closed off 3 cents at 44 cents on Nasdaq.