CEO 3RD EXECUTIVE OUT AT 3D SYSTEMS.Byline: Nicholas Grudin Staff Writer VALENCIA - Continuing a drastic management overhaul, the chief executive officer of 3D Systems Corp. stepped down Monday, three months after accounting irregularities prompted the removal of two other key executives. Brian K. Service will resign after nearly four years as president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of the $102 million Valencia-based company, which sells systems that create solid models out of computer images. In April, 3D Systems ousted James Selzer as chief financial officer, and in May the company demoted Grant Flaharty from the chief operating officer's role. The executive exodus comes after an audit of the company in February revealed that $3 million in earnings was misreported as revenue for 2002 instead of 2003. Without those earnings, the company failed to turn a profit in 2002. In May, Service said that, with new internal controls and the reconfiguration of management, the company would emerge from ``a long and difficult process.'' With the announcement of Service's own departure from the executive ranks, the chairman of the board, G. Walter Loewenbaum II, said the company will look for a permanent replacement. ``Brian originally joined the company anticipating a short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. assignment. Instead he stayed for almost four years,'' Loewenbaum said. ``The board of directors has decided to put in place a long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. management team.'' As a result of the misreporting detected in the audit, Selzer was let go, a member of the sales staff was fired, and others among the company's 400 employees received informal censure A formal, public reprimand for an infraction or violation. From time to time deliberative bodies are forced to take action against members whose actions or behavior runs counter to the group's acceptable standards for individual behavior. In the U.S. . Later, Flaharty was demoted from chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. to head of American sales, and the company switched from Deloitte and Touche to BDO Seidman BDO Seidman, LLP is the United States arm of BDO International, one of the largest accounting firms outside of the Big Four. History BDO Seidman, LLP was founded as Seidman and Seidman in New York City in 1910 by Maximillian L. Seidman. for accounting services. Shares of the company - traded on the Nasdaq exchange - dropped about 6 percent on the news of Service's departure to close at $8 per share. The company's stock has suffered since word of the accounting irregularities but recently looked to be recovering. Company co-founder Charles W. Hull was named interim CEO on Monday, and a search for a permanent replacement is under way. Also on Monday, the board named financial consultant Kevin M. McNamara acting chief financial officer. ``(Hull's) in-depth knowledge of our company, its people, customers and its technology, combined with the expertise Kevin McNamara Kevin McNamara may refer to:
Service, whose resignation as CEO is effective immediately, will stay with the company as a consultant for two years. Founded in 1986, 3D Systems bills itself as the world leader in rapid prototyping Building a part one layer at a time using a method of additive fabrication such as 3D printing. Such parts are used for concept modeling to determine if the product design meets the customer's expectations. , used to design everything from jewelry jewelry, personal adornments worn for ornament or utility, to show rank or wealth, or to follow superstitious custom or fashion. The most universal forms of jewelry are the necklace, bracelet, ring, pin, and earring. to automobiles. Nicholas Grudin, (661) 257-5255 nicholas.grudin(at)dailynews.com |
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