President & CEO, Member of the
Board
GTI — a multinational manufacturer
and marketer of networking and network access products.
The Valor Electronics division was the leading worldwide
supplier of magnetics-based components used in networking
products (LAN, WAN) with a 53% market share. The Promptus
Communications division was an emerging technology leader
in “bandwidth-on-demand” management for worldwide
networking and video conferencing. Publicly traded on
NASDAQ.
- Grew revenues from $30 million
to $175 million.
- Increased market capitalization
from $26 million to $400 million.
- Consistent growth and profitability
including 12 consecutive quarters of 100% increase
in earnings per share.
- Raised return on equity from
8% to 24%.
- Recruited by the Board of Directors
and successfully remolded this 40-year-old company
with stagnant growth and declining technology.
- Designed and implemented the
company’s core strategy.
- Acquired and grew two highly
successful companies in network related market areas.
- Realigned the corporate operating
and management structure including the recruitment
of three division CEOs and corporate financial staff.
- Changed the Board of Directors
from a predominately passive, insider dominated Board
by attracting experienced business leaders.
- Moved the company from the American
Stock Exchange to NASDAQ and revitalized the company’s
image on Wall Street.
- Directed two successful public
offerings.
- Reorganized older businesses
with declining technology.
- Developed offshore manufacturing
in Asia and Europe.
- Turned around one money-losing
and two declining businesses into profitable operations.
Led/directed operating management in the revitalization
of businesses which had stagnated for nearly a decade.
The businesses became viable, growing and profitable
by initiating the following actions:
- Consolidated divisions.
- Removed a layer of management.
- Eliminated losing product lines.
- Moved product manufacturing offshore
for cost improvement.
- Acquired product lines with greater
growth potential.
- Most significant contribution
was to identify and lead the strategic acquisitions
of Valor, a $12 million electronics components manufacturer
which grew to a $116 million dominant supplier and
leader in its industry, and Promptus Communications,
a supplier of high speed digital network access products.
The acquisition of Valor positioned GTI in the Local
and Wide Area Network (LAN/WAN) market, the fastest
growing sector of the computer industry.
- Because of the very rapid growth
of Valor it was necessary to assume day to day operating
responsibilities when the founder / entrepreneur decided
to step down. Ran the company while recruiting a new
CEO. This was during a period of explosive growth.
During this 6 month period the following was achieved:
- Increased Far East manufacturing
capacity by 20%.
- Eliminated low margin products.
- Changed pricing strategy, effectively
stopping industry price war.
- Redirected engineering effort
toward higher technical products.
- Accelerated automation program
for more cost-effective manufacturing.
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