Served Only 3 Months : Key Image Chairman Steps Down

Key Image Systems disclosed Monday that Ehsan Manavi, chairman of the Chatsworth computer equipment company for just three months, resigned in December to pursue “personal business interests.” Fara Mahdavi, the company’s president since April, has taken on the title of chairman and assumed Manavi’s duties.

The management change comes at a time when the 12-year-old company is losing money and spending heavily on research and development. Key Image announced Monday that it lost $599,915, or 47 cents per share, on sales of $424,322 for its second quarter ended Sept. 30.

During the same period the previous year, Key Image lost $768,100, or 65 cents per share, on sales of $32,700.

The company makes and sells computer systems that use video cameras to identify images. For example, the U.S. Bureau of Engraving and Printing uses Key Image equipment to read serial numbers on paper dollars.

“There have been significant management changes at every company that has tried that business,” said Michael Murphy, editor of California Technology Stock Letter. “It’s tough.”

Key Image, which employs 40 people, also makes English/Arabic microcomputer equipment for data and word processing through its Gulf Data subsidiary.

Manavi, 40, previously an independent computer consultant, was named chairman last fall to replace Fery Aalam, who had been the company’s chief executive since March, 1980, and its chairman since last April. Aalam resigned in September, citing disagreements with company directors over “the future plan of operation and direction of the company.”

Mahdavi, 42, was an executive with Gulf Data when it was acquired by Key Image a year ago. He has a master’s degree in business administration from the Wharton School at the University of Pennsylvania.

Officials of the company could not be reached for comment.