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biz.yahoo.com
GAITHERSBURG, Md., March 3 /PRNewswire/ -- Optelecom, Inc. (Nasdaq: OPTC - news) today announced the appointment of Richard C. Kreter to its Board of Directors. Kreter is currently Managing Partner of Kreter & Associates, a private management consulting firm
biz.yahoo.com
Optelecom, Inc. to Reorganize Paragon Audio Visual Ltd.
GAITHERSBURG, March 3 /PRNewswire/ -- Optelecom, Inc. (Nasdaq: OPTC - news) today announced it would move ahead with plans to reorganize its U.K. based subsidiary, Paragon Audio Visual Ltd.
Edmund D. Ludwig, president and CEO of Optelecom stated, ''We have dismissed, for cause, David Brown, founder and former Chairman of Paragon. We have also dismissed for cause Andrew Brown, Mark Brown and Darren Brown, respectively. Mr. David Brown has also resigned from Optelecom's Board of Directors.''
We have placed other Paragon employees in key positions, including Michael Weight, who has assumed responsibility for Paragon's day-to-day operations as its Managing Director. Undoubtedly, there will be other managerial and staffing changes.''
Commenting further on the reorganization, Ludwig added, ''We believe we have a core group of talented professionals in place at Paragon who can manage and grow the business in the years ahead. We have markedly reduced staffing expenses and the new Paragon management team is working to reduce fixed costs as well. Our goal is to advance Paragon's business prospects while streamlining its operations and stabilizing its product margins.''
The company noted that there have been ongoing charges associated with the purchase of Paragon Audio Visual Ltd. The company also noted that it had provided Paragon with an infusion of working capital in excess of $790,000 during 1998. It is expected that will be additional charges to earnings reported in Optelecom, Inc.'s fourth quarter that are related to Paragon. Results for the fourth quarter and all of 1998 are due to be released on March 31, 1999.
''Clearly, it was time to enact changes that enhance Paragon's ability to realize the objectives we envisioned when we made our purchase during December of 1997. While Paragon achieved revenue growth last year, its operating results have fallen far short of expectations. We believe these changes will help Paragon realize its potential,'' Ludwig added. |
