Maxtor CEO quits

Paul Tufano, CEO and acting CFO at Maxtor, has left the hard disk drive maker and resigned from the board of directors, bringing to an end an eight-year stint at a senior executive level with the company.

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By  Stuart Wilson Published  November 16, 2004

Paul Tufano, chief executive officer (CEO) and acting chief financial officer (CFO) at New York-listed Maxtor, has left the hard disk drive maker and resigned from its board of directors, bringing to an end an eight-year stint at a senior executive level with the company. Chairman Dr. C. S Park has been named as the new CEO with Maxtor board member Charles Bosenberg being appointed as lead director. Bosenberg is also chairman and CEO at security management software vendor NetIQ. Maxtor, which has already had four CFOs this year, is continuing its search to find a suitable candidate to fill the position. “The Board thanks Paul for the significant contributions that he made during his eight years as a senior executive with Maxtor,” said Dr. Park. “During his tenure, Paul was instrumental in growing the company from approximately $800 million in revenue in 1996 to over $4.0 billion in 2003, strengthening the balance sheet, and moving Maxtor forward into emerging markets for hard drives. We wish him well in his future endeavours.” Tufano’s long-term achievements at Maxtor were somewhat overshadowed by its recent financial performance. Third quarter sales for the period ending September 25th slipped 13% year-on-year to US$927.2m with after tax losses spiraling to US$90.6m compared to a profit of US$29.9m a year earlier. These figures followed on from poor second quarter results as problems concerning Maxtor’s OEM relationship with Dell and worries about channel inventory levels took their toll. Nevertheless, Dr. Park remains upbeat about NASDAQ-quoted Maxtor’s future potential: “As we look ahead, we remain very optimistic about the outlook for the hard drive industry and for Maxtor. The executive team, with the support of our talented employees, will be working hard to return the company to profitability as soon as possible.” 2004 has been a difficult year for hard disk drive vendors across the board punctuated by price wars, an uncertain demand environment and inventory control problems. Some industry analysts believe that further consolidation is required in the hard drive sector to reduce the number of vendors serving the market. At present, the big five players in this space are Seagate, Western Digital, Maxtor, Samsung and Hitachi GST.

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