Sterling Software alum and industry veteran Gene Tolari is Saba Software Inc.'s new president and CEO, the E-learning system supplier said Tuesday. Tolari spent 10 years at Sterling, rising through the ranks to chief operating officer and executive VP before the E-commerce software maker was acquired by Computer Associates in 2000.

Former Saba CEO Bobby Yazdani will remain as chairman of the board. Saba develops Web-based platforms that track and manage employee career development, called learning-management systems, for companies such as Procter & Gamble Co. and DaimlerChrysler AG.

Saba also reported Tuesday that its third-quarter revenue for fiscal 2002 had decreased 11% from the same period last year. For the quarter ended Feb. 28, Saba reported a net loss of $3.8 million on revenue of $12.9 million, compared with a net loss of $15.1 million on revenue of $14.5 million for the third quarter of 2001.

Although Saba's economic situation appears cloudy, ThinqEquity research analyst Nate Swanson sees a bright future for the company. "Technology spending is down now, but for the second half of 2002, Saba is better positioned that most," he says, because it's "offering best brand, smart people, the best distribution with system integrations, and a great cast of customers."