Scitex president and chief executive Yoav Chelouche has resigned.


He will step down on 1 September but will continue to advise the company until the middle of next year.


Chelouche is to join Fantine Capital, an Israeli business development specialist. He will become managing partner of its venture capital fund, Fantine Capital Europe One.


"Through Yoavs tenure, Scitex has transitioned from digital pre-print to be focused on digital printing," said chairman Meir Shannie. "Yoav has been invaluable."


A report in Globes Israels Business Arena claimed differences between Chelouche and Scitexs major shareholders had led to his resignation.


Chelouche, a Scitex veteran with over 20 years service, was appointed president and chief executive officer in 1995.


Scitexs marriage to Creo may also end in bitter separation after it revealed 100m losses associated with its Creo holding.


Though Scitex's revenues for the second quarter went up 27% to 44m, net loss was 108m. Nearly all of that was due to the write down associated with the companys holding in Creo, it said.


Chelouche said: Creo has been affected to a greater degree by market conditions and has recently reduced its outlook for the coming quarters.


Under Chelouche Scitex acquired a 27% stake in Creo worth 280m in exchange for its pre-press business. But its value tumbled and Israeli press reports recently suggested Scitex wanted to sell its holding having already cut its ties with Vio and Karat.


However, Scitex insisted that by focusing on the growing digital printing market and its ink-jet technology it had ensured a strong performance in its core businesses.


Its operating income for the second quarter was 2.7m compared to a loss of 2.4m in the period last year.