Bay Networks finds its new chief at Intel
Article Abstract:
Bay Networks names former Intel employee David L. House as CEO, chairman and president, earning positive reaction from Wall Street, which sent the company's stock up $2.125 to close at $20.625 on Oct 30, 1996. House's most difficult task will be to unite Bay, which was formed by a 1994 merger of Wellfleet Communications and Synoptics Communications. The company has not been able to merge the two cultures. House must also improve sales and marketing at the company, which has a strong technology base. Analysts say that House has the expertise required to lead the $2 billion company that Bay has become. House worked at Intel for 22 years and guided the microcomputer components group there through 100% growth over a 13-year period. The appointment is well timed, coming shortly after Bay announced 1st qtr FY 1997 results. For the quarter, Bay's income dropped to $5.63 million, well below the $63.2 million earned in the same quarter in FY 1996.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1996
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A shake-up of management at Bay Networks is expected
Article Abstract:
Bay Networks Pres and CEO Andrew Ludwick confirms that he will resign and that the company already has plans for his successor, but he refuses to specify when the changes will occur. Ludwick claims that his plans to leave the company are the result of a long-held personal commitment to devote no more than 10 years to the company, but outside pressure is building as well. The $2 billion Bay Networks has enjoyed consistent revenue growth but is having a difficult time keeping pace with Cisco Systems in the $10.7 billion networking hardware market. In Mar 1996, Bay was hurt when it was late in bringing new switches to the market. For the quarter ending Jun 30, 1996, the company's revenue was up 31%, but its per-share profit of 28 cents was 4 cents below analysts' estimates and less than the company earned in the fourth quarter the previous year. The most likely successor to Ludwick is Sun Microsystems Pres Ed Zander.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1996
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Successful high-tech union shows signs of strain
Article Abstract:
Bay Networks is experiencing the problems that are generally expected when two technology companies merge. The company, which is the result of a merger between Wellfleet Communications and Synoptics Communications in 1994, manufactures network communications equipment. It is currently combating 3Com for second or third place in this $17 billion market behind 3Com. Bay Networks has doubled in size since the merger and now earns $2 billion in revenues annually. The stress of managing the merged companies is resulting in a management exodus. Company Pres and CEO Andrew K. Ludwick is ready to resign and Chmn Paul J. Severino plans to cut back his responsibilities. Gary J. Bowen, the head of worldwide sales and support left one week ago. The company has had product delay problems and experienced declining profits and earnings in two consecutive quarters.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1996
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