Peppe,from G&M: Pearse plans to move children this summer. Just in teim to celebrate NN at US$40+ ?
He plans to move his wife and three small
children to the Ottawa area from their current home near Glasgow this summer. "There is an
absolutely exciting future here."
TA
Newbridge COO at eye of the storm
Flynn's promotion comes at a critical time as company puts
itself up for sale and deals with its status as an underachiever
SIMON TUCK
Saturday, December 18, 1999
IN OTTAWA -- Pearse Flynn quickly disposes of any notion that he's cut from the same
cloth as a typical corporate suit.
Mr. Flynn, the new president and chief operating officer at Newbridge Networks Corp.,
spontaneously moves the site for an interview into his office, then clicks on his mouse to
share one of his favorite X-rated sound bites from Scottish comedian Billy Connelly.
The self-described non-conformist is also funny, frank and manages to make it through at
least a few questions without using either the phrases "going forward" or "exciting new
opportunity."
"Should I have cut my nose hairs today?" he jests, as a photographer snaps headshots in the
company's main reception area.
The setting of Mr. Flynn's birth was also different from most of the corporate heavyweights
in North America's booming technology industry. The event occurred only 36 years ago, in a
fishing village in southern Ireland. When asked why he didn't follow two of his six siblings
into the fishing industry, Mr. Flynn deadpans: "I found out it was too hard."
Despite Mr. Flynn's unlikely ascension at Kanata, Ont.-based Newbridge, the former
Compaq Computer Corp. executive has been brought to the helm at a critical time in the
communications equipment company's history. Long seen as a dissident in the convergence
of voice and data communications firms, Newbridge announced Nov. 18 -- Mr. Flynn's first
day on the job -- that it was up for sale. That puts the man from Ballycotton, Cork, in the
centre of a storm as the company decides whether to fish or cut bait.
"I absolutely can't believe all the speculation [about the possible sale]," Mr. Flynn says.
Newbridge has been the subject of frequent speculation by analysts and reporters about a
possible takeover for at least two years, but it's reached a near-fever pitch since the
company's announcement last month. "I can't believe all of the time I've spent thinking about
it," says Gurinder Parhar, an analyst at Dundee Securities Corp. in Toronto, only
half-jokingly.
Mr. Flynn, who was hired to work at Newbridge less than a year ago by his predecessor,
Alan Lutz, was somewhat removed from the frenzy in his previous job running the
company's operations in Europe, Africa and the Middle East. When the company continued
its habit in recent quarters of not meeting analysts' expectations, Mr. Lutz left the company
and Mr. Flynn took over.
"I make things happen," straight-talking Mr. Flynn says, when asked why he got the job.
Like Mr. Lutz, Mr. Flynn has already made a lot of things happen in his first couple of
months on the job. The self-described "agent of change" has initiated a dramatic cost-cutting
plan that included about 700 pink slips, announced the release of the company's
next-generation telecommunications switch, made at least three key changes to the
company's senior management team and, according to the company, improved sales in the
critical U.S. market.
As with most new bosses, Mr. Flynn emphasizes the importance of communicating with
employees, "including the bad news." He plans to move himself and the company's other
senior executives into smaller, more accessible offices and describes himself as an informal
guy who made the point of going to both of the company's Christmas parties.
"Pearse is definitely the sort of guy where you're comfortable just going in his office and
grabbing a beer from the fridge," a former Newbridge employee says.
Analysts who have been covering Newbridge in recent years, however, have been more
comfortable just going into their medicine cabinets and grabbing an Aspirin. Even though
it's grown rapidly in recent years to become Canada's second-largest technology company
as measured by sales, Newbridge has been viewed as an underachiever in recent quarters
as it has steadily chipped away at analysts' confidence. Trying to pick up the pieces after
issuing profit and earnings warnings in six of the last 10 quarters, Newbridge has lost the
Bay Street darling status that it enjoyed only two years ago as its share price climbed to $95
on the Toronto Stock Exchange. It is now trading at $34.70.
When asked about Mr. Flynn's appointment, most analysts say they have little or nothing to
say because the new guy is an unknown quantity. Some, however, suggest his promotion
looks at first blush like a back-to-the future move for Terence Matthews, the company's
founder, chairman and chief executive officer.
When he hired Mr. Lutz about 18 months ago, the move was seen as a radical departure
because Mr. Matthews was bringing in a seasoned operations professional to act as a
balance and foil to his own strengths: technology, marketing and connections within the
company's key markets. But sources within the company say the two-pronged leadership
structure created a power struggle between Mr. Lutz and Mr. Matthews almost from the
beginning.
If that's true, Mr. Matthews, who carried the bigger axe, won. The two signed an agreement
not to talk publicly about their relationship -- or their breakup -- as part of Mr. Lutz's
parting gift.
By promoting Mr. Flynn, analysts say, Newbridge is clearly back in Mr. Matthews' control.
Mr. Flynn dismisses that. "Terry and I are going to build this thing together," he said on his
first day on the job.
Like the Welsh-born Mr. Matthews, Mr. Flynn is also a gregarious and charismatic
enthusiast who hails from the European side of the Atlantic Ocean. At least on the surface,
that should mean less foil -- between the two leaders -- and more harmony.
Ever-confident Mr. Flynn says he's betting on it. He plans to move his wife and three small
children to the Ottawa area from their current home near Glasgow this summer. "There is an
absolutely exciting future here."
Mr. Flynn says he's been able to make a difference in previous jobs and he plans to do it
again. "It's a leadership issue -- not a people issue or a technology issue."
As for the future of the 6,000-employee company, Mr. Flynn emphasizes that there's a big
difference between putting something up for sale and selling it. "We've got a go-it-alone
plan," he says, deflecting his public relations officials' plan to stay clear of the company's
ownership question.
Newbridge may or may not be sold, Mr. Flynn says, but the numbers must improve either
way. "We have to deliver this quarter."
NEW BRIDGEMASTER
Name: Pearse Flynn
Job: President and chief operating officer
Age: 36
Born: Ballycotton, Cork, Ireland
Previous job: General manager, Europe, Africa and the Middle East
Family: Married, with three small children
Key personality trait: Non-conformist
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Message #15998 from Peppe at Dec 20 1999 9:47AM
Pearse is not going to move his family and 3? children from Ireland, uproot them from school, if he was uncertain about the future,
His family is still in Europe. Maybe they'll move after they see the numbers <vbg>
peppe |
