Analogic is shifting its corporate focus to its explosives detection and security systems business in the wake of the September 11 terrorist attacks and in light of lower CT revenues due to the upcoming loss of a major OEM client.
The recent economic downturn has also caused a severe decline in Analogic’s communications and semiconductor test equipment activities. These factors, combined with an increase in expenses incurred in anticipation of future growth, are causing the Peabody, MA, company to refocus, the firm said.
One sign of the new strategy is exemplified by changes in its corporate management structure. Founder and former CEO Bernard Gordon has been made executive chairman, and has established an operating committee consisting of the corporate officers and group vice presidents.
Gordon and Donald Barry, group vice president and president of Analogic subsidiary Sky Computers, will concentrate on OEM product development and customers, particularly OEM medical imaging systems and subsystems.
President and CEO Tom Miller will focus on niche market end-user activities of subsidiary B-K Medical, which specializes in surgical and urological management. He will also be responsible for seeking related acquisitions while certain older Analogic activities are sold or deactivated.
Julian Soshnick will become vice president and general counsel, replacing Gene Bauer.
The company said that a "recently announced acquisition in the field of computed tomography has resulted in one of Analogic’s major customers advising that they are planning to source products from an acquired entity instead of Analogic."
Although Analogic did not name the two companies, Analogic has been an OEM supplier of CT technology to Philips Medical Systems, which just completed its acquisition of Marconi Medical Systems -- a major CT manufacturer.
By AuntMinnie.com staff writersOctober 26, 2001
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