Irvine Sensors Redeploys Upper Management
Irvine Sensors Corp. announced a top-level shake-up Thursday, part of the company’s ambitious move to develop and market high-tech gadgetry that it developed through years of research for the military.
Chief Executive James Evert, who became head of the company three years ago when it was racking up some of its biggest losses, has resigned to become chairman and CEO of RedHawk Vision Inc., the Costa Mesa company’s newest subsidiary.
The move reflects the company’s increased emphasis on developing products through subsidiaries, which are viewed as major engines of growth.
As envisioned by company executives, Irvine Sensors initially funds subsidiaries’ operations, then seeks outside money from investors or corporate partners, If the products are successful commercially, the company plans to sell the units or take them public, said John Stuart, chief financial officer.
Although Irvine Sensors has never had a profitable year in its 20-year history, Stuart said the company stands to reap a windfall if its units sell stock to the public or are acquired by another firm.
“We believe we’ll have better shareholder value if we’re spawning businesses that are more flexible and focused and can be separately managed, marketed and financed,” he said. “The Street likes companies to have a clear vision of what they’re doing.”
Robert G. Richards, a member of Irvine Sensor’s scientific advisory board and former head of Aerojet Electronic Systems Division, has been tapped as interim chief executive of the parent company. He is expected to participate in the search for a permanent replacement.
Irvine Sensors, which designs miniature electronics systems and holds dozens of patents, is currently developing miniature cameras, computers and image-processing gear, among other products.
It has four subsidiaries and hopes to create another unit by the end of the year. It could create as many as a couple dozen addition units in the future, Stuart said.
In addition to RedHawk Visions, which makes video editing software, the company operates Novalog Inc., a manufacturer of infrared communications products; MicroSensors Inc., a producer of microsensors; and Silicon Film Technologies Inc., which develops and manufactures digital imaging products.
Irvine Sensors owns at least 95% of Novalog, MicroSensors and RedHawk Vision and 53% of Silicon Film.
Until 1992, Irvine Sensors and other defense contractors were forbidden to develop commercial products from government research. That year, the Defense Department reversed itself, mandating that contractors try to develop commercial products from their research.
In the second fiscal quarter, the company’s losses nearly tripled to $2.9 million, or 8 cents a share, as it accelerated product development. Revenue for the three months ended April 2 declined 7% to $2.8 million.
The company’s stock has more than doubled so far this year, but Wall Street appeared unimpressed with the executive changes announced Thursday. The stock closed at $4.44, down 31 cents a share, on the Nasdaq SmallCap market.
