EMS Technologies replaces CEO

ATLANTA

EMS Technologies Inc. is replacing CEO Paul Domorski, saying it needs a leader with a stronger engineering background.

The company said Neilson Mackay, who has served as chief operating officer for the past year, will take over.

EMS, which provides wireless communications equipment, has been struggling. Its stock has lost nearly a quarter of its value since it reported third-quarter earnings last week that fell short of Wall Street forecasts.

Excluding unusual items, EMS said it earned $5.8 million, or 38 cents per share, on sales of $85.7 million. Analysts polled by Thomson Reuters expected 41 cents on $101.7 million.

Chris Quilty, of Raymond James, called the company's third quarter a "train wreck" in a note to investors. The results, he said, reflected weak demand, delayed orders "and plain dumb luck."

Still, Quilty added, "We do not see anything materially wrong with EMS' business beyond weak end-market demand."

In an interview, EMS Chairman John Mowell said Domorski's departure is not related to the company's third-quarter performance.

Mowell said Domorski "did a wonderful job for us and the company is two or three times stronger than when he took over" in 2006. But he added, "We have to be ahead of the game, and that means more engineering leadership," an area where Domorski fell short.

Domorski has held executive positions at other technology companies, including Avaya Corp. and RSL Communications Ltd., but his background is in management. He earned a master's degree in organizational dynamics at the University of Pennsylvania and attended the Wharton School's advanced management program, according to EMS's Web site.

Mackay holds a Ph.D. in electronics and communications engineering.

The company's shares rose 18 cents to $13.05 in afternoon trading.