Gateway’s Waitt Names New Execs in Shake-Up on First Day Back
Gateway Inc. founder and Chairman Ted Waitt on Tuesday named a new chief financial officer and other senior managers in his first day back as chief executive, saying he needs a more aggressive team.
Waitt tapped as chief financial officer Joe Burke, who has been senior vice president of global business development and had overseen the personal computer maker’s retail store expansion plan through 1998. Burke replaces John Todd, who is leaving to pursue other interests, the company said.
Waitt also named two new senior vice presidents, who will report directly to him.
Bart Brown will serve as senior vice president of consumer computer sales, Gateway’s biggest division, replacing Cliff Holtz, who is leaving the company. Dave Russell was named senior vice president of supply-chain management.
The moves came a day after Gateway said Waitt is returning as chief executive to replace Jeff Weitzen, who held the position for 13 months.
Waitt’s return and the shake-up sparked speculation that he may try to sell the company.
“Only half the senior management team is left,” Ashok Kumar, a US Bancorp Piper Jaffray analyst who rates Gateway a “buy,” told Bloomberg News. “Is he cleaning shop to put the company up for sale? There’s a lot more questions than answers.”
In a 10-minute conference call with analysts and investors Tuesday, Waitt didn’t take questions.
Waitt said his management style differs from his predecessor’s and that he wants “a faster, more aggressive, more experienced team.”
Analysts blamed Gateway’s weak fourth-quarter results in part on the firm’s failure to cut prices along with rivals such as Dell Computer Corp.
Gateway will examine selling so-called information appliances, Waitt said, but he added that he continues to believe that PCs will remain important to consumers.
He also said the company will keep operating its Gateway Country retail stores and will consider whether to open new ones.
The company’s shares Tuesday closed off 68 cents at $20.98 on the New York Stock Exchange. They have declined 64% in the last year.
