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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


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Updated Aug. 21, 1997 by bwwebmaster
Copyright 1997, Bloomberg L.P.
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