Concurrent CEO Quits
The company did not disclose any specific grounds for his decision, but Trimm is leaving the CEO post due to "personal reasons," according to a company official.
Dan Mondor, late of Mitel Network Solutions, Nortel Networks Ltd. , and Siemens AG (NYSE: SI; Frankfurt: SIE), was named Trimm's successor. (See Concurrent CEO Steps Down.)
Trimm, appointed CEO of Concurrent in the summer of 2004, will stay on as a part-time consultant for an undetermined amount of time. He and Mondor will both participate in the company's fiscal third-quarter conference call on April 25.
Trimm is departing Concurrent just as the company starts to regain some traction for its on-demand business as operators upgrade their platforms to handle high-definition VOD and more advanced network DVR apps. Last week, Cox Communications Inc. agreed to standardize its VOD system upgrade on Concurrent's MediaHawk 4500 platform. (See Cox VOD Effort Matches Vendor Rivals .) In January, Bright House Networks picked Concurrent for what's believed to be the largest deployment of "Start Over," a service that allows viewers to restart select shows (i.e., those with copyright clearance) already in progress. (See Bright House Starts Over in Tampa .)
Those deals, however, have done little to help Concurrent's flagging stock price, which has been below the $1 mark since Nov. 16, 2007. Concurrent shares were down $0.02 (2.71%) to $0.75 each in early trading Wednesday.
"We view this as a modest positive overall for [Concurrent] shares," Friedman Billings Ramsey & Co. Inc. analyst Brian Coyne wrote in a research note. "On one hand, we see Mr. Mondor's arrival as a chance to reinvigorate the company's leadership, but on the other hand, we recognize the continuing challenges that CCUR faces."
The new CEO may help squelch rumors that Concurrent is seeking a buyer. "At this stage, you see a change like this as an opportunity more than anything else," Coyne says, noting that it's not clear if Concurrent will be able to reestablish itself with Comcast Corp. (Nasdaq: CMCSA, CMCSK), which has been relying on other VOD vendors such as SeaChange International Inc. (Nasdaq: SEAC), Motorola Inc. (NYSE: MOT), and Cisco Systems Inc. (Nasdaq: CSCO).
Mondor has cable credentials, but those alone won't necessarily stand out. "I don't think that's at the top of the resumé," says Ferris, Baker, Watts Inc. analyst Murray Arenson. He believes Mondor, given his lengthy tenure at Nortel, could help Concurrent drive sales across the cable, telco, and enterprise sectors and open up opportunities for the vendor's Real Time division.
Most recently, Mondor was president of Mitel. Before that, he spent 16 years with Nortel, with part of that time as VP and GM of the company's global cable MSO business unit. Mondor spent six years with Siemens, joining that firm in 1984.
― Jeff Baumgartner, Site Editor, Cable Digital News