Does anyone understand the organization of the company along product line divisions?
The 10-K states: "The product line divisions are: Networking (including routers, hubs and switches and network interface cards), Broadband, and Network Print Servers."
Later on, key employees are listed as Nicholas J. Whelan for the Networking Division, and Cornelius Peterson III for the Network Print Server Division. There is no one listed as head of a Broadband Division.
Also, Ronald Mackey is listed as President of the Switches and Hubs Division. This would seem to more properly be a subdivision of the Networking Division, according to the above quotation. PG Narayanan is likewise listed as President of the Internetworking Division. What is this, and where does it belong? The same question applies for Robert Miller and his NIC Division. (Also, they can't decide whether he's President or Director of this division.)
Similarly, Anthony P. Mauro is listed as President of the RF Synthesis Unit. Where does this fit in? Is it better to be President of a Unit, or a Director/President (depending on which sentence you read) of a Division (which is probably really a subdivision)?
I am sure that the period of rapid acquisitions has played havoc with the company's organizational chart, and I hope that things have become clearer in the months since the last 10-K was issued. The company needs to do a better job of explaining its business to investors. Also, unless I've missed it, the 10-K doesn't indicate what percentages of sales and earnings come from the "three" main divisions, which is something which is almost always included for companies which divide their business along divisional lines.
Others have complained months ago about the Annual Report. I don't mind the incorporation of the 10-K, instead of duplicating the financial tables. Mr. Chadha's letter was also fine. I would like to see a 2- to 4-page spread for each of these product line divisions, highlighting some of their products. Color photos showing some of their employees or customers with their products would also be a great idea. "Theresa Jones and Tommy Chang perform calibration and testing on an IQX-200 Remote Access Server;" "Bubba Jones, Project Manager for NASA, beams at the performance of the GigaMux;" etc.
I hope that the company's 4th quarter wil be profitable, and backlogs will also be high, and Osicom will feel that they can spend more money on the annual report. It also needs to be produced much sooner. For some reason, the incorporated 10-KSB for the 1997 report was filed over three months following the end of the fiscal year. |
