The company said the resignation was the result of a disagreement between Vesta and Mr. Cronin over the appropriateness of his relationship with some of the company's vendors.

"These relationships do not impact the accuracy of our financial statements and we intend to certify our financial statements for the third quarter," said Norman W. Gayle 3d, president and chief executive officer, in statement. "We are launching a search for a permanent CFO to be named by the end of 2002."

The company said it expects to report third-quarter operating profits ranging between 5- and 10 cents a share. The company plans to announce its third-quarter results Nov. 5.

Vesta said it also expects to realize a $3 million pre-tax gain in the third quarter and a $3.9 million pre-tax gain in the fourth quarter, both resulting from its repurchase of its senior debt plus accrued interest.

For the third quarter of 2001, the company reported a loss of $18.2 million, or 57 cents per share. The company said it took a one-time $30 million charge for a securities litigation settlement and strengthened reserves by $30 million in the third quarter of 2001.