CEO of Dense-Pac Microsystems Resigns

Dense-Pac Microsystems Inc.’s chief executive unexpectedly resigned Tuesday because of a dispute with board members of the Garden Grove maker of computer chip modules.

The news sent Dense-Pac’s already slumping stock to a 52-week low, dropping 38 cents to close at $1.13 a share.

Uri Levy, who joined the company as chief executive in January 1997, helped invent the company’s new memory panel stacking process. He apparently clashed with the board over his effort to diversify beyond memory-related products, according to a statement released by the company.

“From the first day, I’ve been able to contribute a lot to this company,” Levy said Tuesday. “The company is a very good business and there are good people there. But it’s time for me to do other things.”

In a letter to shareholders, Levy said he had hoped to expand the company’s product mix and branch into emerging markets such as the Internet.

Neither board members nor company officials could be reached for comment.

Analysts say that companies like Dense-Pac, which are competing against memory giants like Hewlett-Packard and Intel Corp., need to be able to broaden their market appeal in order to compete.

“There are a number of smaller players that have gotten into this field and fallen out of it,” said Duane Smith, analyst with the market research firm VisionQuest 2000. “But it’s so heavily dominated by the big players that it’s difficult for the smaller companies to be seen” by the marketplace.

Dense-Pac has struggled to remain profitable over the past couple of years. For the first fiscal quarter ended May 31, the company reported a net loss of $674,471, or 4 cents a share, compared to a net loss of $698,301, or 4 cents a share, for the same period last year. Net sales were $2.2 million, down from $3 million.