Top Management Shuffled by MTI Technology

MTI Technology Corp., a struggling maker of computer data storage systems, made a flurry of management changes Wednesday and said the company expects to post a loss of $28 million to $38 million for its fiscal fourth quarter.

The loss reflects, among other things, severance payments made to about 30 employees who were laid off at the Anaheim-based company earlier this month, a spokeswoman said. After those cuts, MTI was left with about 600 employees worldwide, including 230 in Anaheim.

As part of an extensive management shake-up, Earl Pearlman was named president and chief executive officer after serving as vice president of U.S. sales.

Pearlman succeeded Steve Hamerslag, who will remain with the company as vice chairman, and will be responsible for technology and business development.

MTI also named Dale Boyd acting chief financial officer, succeeding both the previous CFO, Bob L. Corey, and Treasurer Michael Clemens. Boyd also retained his existing responsibilities as corporate controller and chief accounting officer.

The fourth-quarter loss, projected to fall from $1.44 to $1.95 per share, was attributed not only to the layoffs but to write-offs of excess inventory, as well as a $2-million charge to settle a shareholder lawsuit.

The company said it expects an annual loss of $39 million to $49 million in the fiscal year that ended March 30, compared to a $25.5-million loss in fiscal 1995. Sales this year, however, are expected to be slightly ahead of last year’s $127-million mark, company spokeswoman Sheree Zizzi said.

Ray Noorda, chairman of MTI, said, “Although we are dissatisfied with MTI’s overall financial performance, we remain encouraged by the year-to-year revenue growth.”

MTI’s stock price fell 25 cents to close at $1.75 per share Wednesday on the Nasdaq market.