ActivCard CEO Quits in Clash

ActivCard Corp., which makes computer security products, said Tuesday that Chief Executive George Garrick resigned in a dispute with the board over strategy after four months with the company. Its shares fell 14%.

Garrick’s resignation is effective immediately, and a search for his successor has begun, Fremont, Calif.-based ActivCard said in a statement.

Company spokeswoman Julie White declined to characterize the disagreement.

ActivCard, whose customers include Airbus and Lloyds TSB Group, has reported eight straight quarters of net losses. Garrick sought to restructure the company and use its cash to acquire competitors, said Brian Ruttenbur, an analyst at Morgan Keegan in Nashville, Tenn., adding that he didn’t know the specific nature of the dispute. Ruttenbur rates the stock “market perform” and doesn’t own shares.

“They definitely need to get some vision internally on where they need to go,” said Ruttenbur. “Right now, they don’t have it.”

Shares of ActivCard fell $1.01 to $6.15 on Nasdaq.

When ActivCard announced Garrick’s appointment, the company cited his marketing and sales background in the software industry. Garrick, who joined the company Oct. 1, previously had served as CEO of Placeware Inc., which was acquired by Microsoft Corp.

ActivCard’s board has formed a committee to help senior management oversee operations until a replacement is found.

Garrick was not available for comment.

Next week, ActivCard will report fourth-quarter results.