Iomega Loses Another CEO
ROY, Utah (AP) _ Iomega Corp. CEO Jodie Glore has resigned, forcing the troubled computer equipment market to search for someone to lead the company for the second time in the past 10 months.
Iomega said Thursday that Glore, who also served as president, is leaving for personal reasons. ``I expect to take my first vacation in three years and spend time with my family,″ Glore said in a company statement.
Glore will remain with Iomega until Aug. 31. David Dunn, chairman of the company’s board of directors, will act as CEO until a replacement is found. Glore also said would be available to the board for whatever advice and counsel they would seek from him.
He said Iomega made considerable progress during his tenure and he believes the progress will continue after he leaves.
But analyst Howard Rosecrans of the New York research firm H.D. Brous had a much harsher prognosis.
``Basically he inherited a difficult situation,″ Rosecrans said Friday. ``This company is headed toward bankruptcy.″
Glore joined Iomega in October after serving as president and chief operating officer of Rockwell International’s automation business, where he was credited with doubling the division’s sales in four years.
He replaced interim president and CEO James E. Sierk, who remained on Iomega’s board of directors. Sierk was named to the post in March 1998, when president and CEO Kim Edwards abruptly resigned after the company announced it had lost $25 million in the first quarter.
Since then, Iomega, the maker of the Jaz and Zip removable data-storage systems for personal computers, has continued to struggle in the marketplace and has lost several key employees.
The company posted a net loss of $47.1 million for the second quarter, due in part to a restructuring charge of $41.9 million stemming from closing facilities and eliminating jobs.
Iomega announced in June that it would cut 450 regular and temporary employees.
Shares of Iomega fell 18 3/4 cents to $3.87 1/2 in trading on the New York Stock Exchange.