Zable Remains at the Helm of Firm He Founded 37 Years Ago

Is Walter J. Zable too old or too set in the past to run the company he founded 37 years ago?

“If you have good health and your mind is still active, it’s difficult to get out of the business,” Zable, 71, said last week. “When I’m too old, I’ll hear it from my people. And believe me, they’ll tell me.”

Zable also recounted how he almost participated in a “seniors” track meet last spring in Florida. Although he ran a 100-meter sprint in 12.8 seconds during training, a pulled hamstring kept the one-time college sprinter and hurdler from competing in the event.

However, business analysts suggest that it might be time for Zable to step aside.

“My problem with Cubic is that Walter Zable is not a young man anymore and he’s having trouble facing reality,” said an analyst who has watched the company during recent years. “He’s the founder and the only chairman Cubic has had, and he can’t face up to anything being wrong with his baby.

Zable dismissed criticism that he is out of touch with today’s technology, arguing that despite the lightning-like pace of technological change, “the theories and techniques remain the same.”

Zable also countered the suggestion that Cubic could generate cash for its electronics divisions by selling its paper products and industrial gas distribution businesses. “I’d love to have a thousand of those companies across the country,” said Zable, who said those lower-tech businesses provide stability during downturns in Cubic’s high-tech businesses.

And what if the stock price, which hovers around 15, falls drastically?

“I’d gladly buy it up,” said Zable, who already owns more than 30% of the company’s outstanding shares. “Believe me, I’d love to buy it all.”