Friday December 19, 7:04 pm Eastern Time
FOCUS-Jobs to remain in top job at Apple, for now
(Adds analysts comments, details)
By Therese Poletti
SAN FRANCISCO, Dec 19 (Reuters) - Apple Computer Inc. said Friday it will not name a chief executive before the end of the year, as it had previously hoped, keeping co-founder Steve Jobs as interim CEO for a while longer.
Jobs' presence, however, is seen by industry executives as complicating the search for a replacement for Gilbert Amelio, who was ousted by Apple's board in July.
It was just one year ago, on the Friday before Christmas, that Apple bought Jobs' company, Next Computer, for $400 million, and Jobs made a triumphant return as an adviser to Amelio at the company that shoved him out in 1985.
Since then, his presence has shaken up the company and he was named interim CEO in September.
''He cuts quite a figure,'' said Lou Mazzucchelli, an analyst at Gerard Klauer & Mattison. While Jobs is on the board, Mazzucchelli said, he has authority but no real responsibilty, and would loom over anyone who takes on the CEO job.
''A CEO needs to have a balance of responsibility and authority,'' Mazzucchelli said. ''Therein lies the problem.''
Late in September, Apple was believed to have narrowed its CEO search to about four candidates, but two of the reported candidates took other jobs.
Joe Costello, the head of Cadence Design Systems Inc., left to head up Michael Milken's high-tech education company, Knowledge Universe, and David Dorman, an executive vice president at SBC Communications Inc., left in late October to head up PointCast Inc.
Last week, the San Francisco Chronicle reported that a top Sun Microsystems Inc. executive, Ed Zander, was offered the job but reportedly turned it down because Jobs would not agree to leave the board.
Sun Microsystems has in the past declined to comment on speculation about rumors that Zander, who is president of its hardware unit, was a leading candidate. Sun officials did not return calls seeking comment.
''There has been a lot of discussion about the candidates ... but we just haven't found the right match for Apple yet,'' said Apple spokeswoman Katie Cotton. ''Therefore, the search is going to continue in 1998,'' she said.
Executive recruiting firm Heidrick & Struggles is still conducting the search in conjunction with Apple's board.
In Silicon Valley, the rumor mill was quiet about any other new candidates, and industry executives said that everyone close to the search was mum on the topic.
Now with Apple's typically busiest quarter nearing its end, analysts and investors are focused on how Apple is doing, especially with its new G3 Macintoshes.
''I had not expected a CEO,'' said Daniel Kunstler, a J.P. Morgan analyst. ''For the next couple of quarters, it's not a problem. Since Fred Anderson (Apple's chief financial officer) is there as a pillar of operations, they could live with that for awhile.''
Kunstler said Apple has clearly taken some appropriate steps to stave off its declining sales, such as its new distribution strategies and new products.
Separately, the Cupertino, Calif.-based computer maker said it will not introduce a low-cost network computer at MacWorld next month. Some industry executives had said Apple would do so.
Apple stock fell 12.5 cents TO $13.69 on Nasdaq, near its 52-week low of $12.75.
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