MetaCreations to Fire 100; CEO Resigns

MetaCreations Corp. said its chief executive resigned as the software maker warned of a large loss for the latest quarter and said it will fire about 100 workers, almost half of its work force. Gary Lauer will be replaced as chief executive and president by Mark Zimmer, president of the business-graphics division, but will remain chairman, the Carpinteria, Calif.-based company said. MetaCreations, which hasn’t had an annual profit since 1993, said it will report a fourth-quarter loss of $38 million to $42 million, with revenue expected to be “significantly” less than analysts’ forecasts. Analysts were expecting earnings of 2 cents a share. It posted a $3.7-million loss on revenue of $11.4 million in the year-ago period. MetaCreations said it will sell its graphics business, resulting in the job cuts. The company plans to focus on electronic-commerce visualization products. MetaCreations shares fell $1.81, or 21%, to close at $7 on Nasdaq.