BOULDER, Colo. — Ken Boenish, the longtime president of New Frontier Media, has resigned from the transactional TV adult distributor.
While the company hasn't officially announced Boenish's exit, New Frontier Media referred to his resignation in a filing two days ago with regulators.
In addition, Boenish was absent from a shareholders conference call last week when the company told investors that it swung to a $110,000 loss in its last quarter.
Michael Weiner, New Frontier Media's CEO, did not immediately return calls to XBIZ over questions relative to Boenish's termination, but the company said in a filing that his exit "could have a material adverse effect on our financial position and results of operations."
The termination occurred sometime this month, with a severance agreement following.
"[T]he recent resignation of our president could be perceived negatively by one or more of our major or other customers, which could result in the removal of a portion or all of our services with those customers," the company said in the filing.
"Our customers could also demand contractual concessions or require more personal attention by our employees to ensure our continuing commitment to those customers and consistent delivery of our services in the absence of our former president."
Boenish, who wasn't available for comment, had an annual compensation package calculated at $948,700 last year.
Just four months ago, he amended his employment agreement with the company in a contract that was to run through 2015.
According to the filing, New Frontier Media entered into a "transition services and consulting agreement" with Boenish after he was terminated that will decrease "commitments under the obligations" of his contract.
The severence deal will still be lucractive for Boenish, who will provide the company with consulting services for $30,000 a month and in return agrees not to reveal trade secrets, compete against New Frontier Media or solicit its employees to leave the company.
Boenish, 44, joined Boulder, Colo.-based New Frontier Media as senior vice president of affiliate sales in February 1999.
In October 2000, Boenish was named president of the company's transactional TV segment and in June 2005 he was named president of New Frontier Media.
New Frontier Media last week reported that revenue fell to $10.4 million from $12.5 million a year earlier in the first quarter ending June 30. During the same period, the bottom line swung to a loss of $110,000 from a profit of $550,000.
The company said revenue from video-on-demand was flat at $5.4 million, and revenue from pay-per-view fell to $3.2 million from $3.5 million.
New Frontier Media blamed both declines on the economy cutting into consumer discretionary spending and from competition from cheaper or free sources of adult entertainment.
New Frontier Media operates numerous adult pay-per-view services, including The Erotic Network, as well as websites.