Sensormatic's Slippery Slide
MAY, 1995 Company reports its 31st consecutive quarter of revenue growth of 20% or more. OCTOBER, 1995 Audit reveals serious accounting problems. Founder, Chairman, and Chief Executive Ronald Assaf blames poor controls. Securities & Exchange Commission begins investigation and shareholders file lawsuits. Robert Vanourek designated CEO. Assaf remains on board. FEBRUARY-MARCH, 1996 Reports restructuring and charges totaling $186 million, pretax, and sheds 775 workers. Vanourek and new CFO Garrett Pierce revamp financial controls. AUGUST, 1997 Announces $65 million aftertax charge to cover overhaul of European division, cuts 1,200 jobs (19% of workforce), suspends dividends. DATA: BUSINESS WEEK
Updated Aug. 21, 1997 by bwwebmaster
Copyright 1997, Bloomberg L.P.