ACT Networks’ New COO Sees Big Market Potential

As more and more people send data and voice information by computer and other high-tech means, the need for network access products continues to grow. This is something that pleases Michael Gardner, the new chief operating officer of ACT Networks Inc.

The Camarillo-based company develops and manufactures network access products for a wide range of voice, data and integrated network uses. Gardner, hired by the company last week, said one of his primary roles will be to help his new employer take advantage of the booming market.

“The worldwide frame-relay market is forecast to be over $3.5 billion by the end of 1998 and the access equipment market is projected to be in excess of a half-billion dollars,” Gardner said. “This market is going to move quickly from a boutique market to a mainstream market, and ACT is positioned to capitalize.”

Gardner, who recently served as president of Whittaker/Xyplex, the communications division of Whittaker Corp. of Simi Valley, said he will begin by trying to strengthen ACT Networks from the inside. He said that with a bit of work the company should ultimately quadruple its output, from about $28 million in annual sales to $100 million.

“I’m going to help put in some of the disciplines and tools that will allow the company to grow,” Gardner said.

“Everything from internal communications and manufacturing capabilities, product development and a heavy emphasis on marketing,” he said. “We need to identify customers, satisfy their needs and build products more cost-effectively and productively. There’s tons of work to be done.”

ACT Networks recorded net sales of $28.4 million for the fiscal year ended June 30, an increase over $20.5 million in fiscal 1995. The company, however, posted a net loss of $5.7 million for the 1996 fiscal year largely due to a $5.6-million pretax charge related to an acquisition in November 1995.

Gardner said he will concentrate on the infrastructure, while President and Chief Executive Martin Shum will continue to seek new markets and business opportunities.

One step in positioning ACT Networks for growth, Gardner said, will be to continue establishing partnerships with other companies. In October, the company announced an agreement with California Microwave’s satellite transmission systems division to develop a satellite network system.

“To grow we need to partner with those companies that complement our technology and can provide a total solution for the customer,” he said. “We will continue to broaden our distribution by establishing these alliances.”