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 AKRON, Ohio, Oct. 19 /PRNewswire/ -- One year ago, the board of directors announced a major change in the executive management of Telxon Corporation (NASDAQ: TLXN).
 During the past year, new executive management evaluated and announced a new strategic plan for the complete redesigning of the company to meet the future needs and challenges of a changing computer market.
 Robert F. Meyerson, chairman and chief executive officer, announced that a substantial number of goals have already been met and that the remainder are expected to be reached by the end of this fiscal year.
 1. The investment in new products and technologies will produce 10 new products in Q4 fiscal year '94.
 2. The reorganization of the North American Sales Division is substantially implemented as quarter-to-quarter sales improve sequentially.
 3. The Retail Technology Group (RTG) was formed and has made great strides in providing advanced retail systems to existing and new customers.
 4. Major changes in all levels of management have been substantially implemented.
 5. The blue print for the redesign of the company from a monolithic structure to eight strategic business groups is in place.
 6. The company has empowered the management of these SBGs with the authority and responsibility to increase sales and profits over the next three to five years.
 7. The formation of the eighth SBG, Telxon's new Vertical Systems Group (VSG) has been accelerated to begin in Q3 of fiscal '94, six months ahead of schedule.
 8. The acquisition of Itronix Corporation, successfully completed in April, has added sales momentum and new market penetration. Itronix year-to-date sales are up substantially over the previous year.
 This quarter Telxon is consolidating its product development, manufacturing, quality assurance and depot service into a new Strategic Business Group (SBG) called the Telxon Products Division. This new group is expected to accelerate quality, product service and time-to- market for new and existing products, as well as to reduce costs and improve efficiency of manufacturing and services.
 A new service facility, which consolidates nine depots around the United States, is expected to open on Nov. 27, 1993, in Houston. The new building is within walking distance of Telxon's new manufacturing facilities which is expected to open in Q1 of fiscal '95. Major changes being made to streamline the manufacturing process in the new plant will increase capacity to meet anticipated demands for future production.
 The company hired Jon Thompson as senior vice president of product development. Thompson was formerly with IBM, Compaq and Dell Computer. Greg Brue was hired as director of quality and sustaining engineering. Brue previously was with Compaq and Dell Computer. These gentlemen are expected to drive the continuing development, quality assurance and delivery of new PBC and PTC products.
 A new series of handheld Portable Tele-Transaction Computers (PTCs) are being shown to customers in Q3 fiscal '94. Orders for these new products are now being taken for delivery in Q4 fiscal '94.
 The next product and service SBG is Aeronet. This company was formed to consolidate and coordinate the design, development and marketing of local and wide area wireless network systems. The new company includes Telesystems, Canada, the Telxon RF research and development Group and the Telxon Systems Integration Group (SIG) in Akron. Aeronet will provide complete wireless connectivity solutions to the Telxon vertical market groups and will sell services and OEM products directly to other manufacturers and resellers.
 Aeronet is expected to become a stand alone company with the possibility, if market conditions and other factors warrant, that a portion of the stock could be sold separately by Telxon in an Initial Public Offering some? over the next two years.
 Richard Heller was hired as president of Aeronet. Heller was formerly with DCA, Network Systems and Proxim Radio. James Holt has been hired as Aeronet's vice president of sales and marketing. Holt was formerly with IBM, Basicomputer and the IES Group (one of the top five connectivity and Wide Area Network (WAN) companies in the United States this past year).
 Previous to announcing the formation of Aeronet, Telxon delivered over 200,000 wireless PTCs and considers itself to be the largest such provider in the United States.
 A new generation of 900 MHz, 2.4 GHz spread spectrum radios and micro radios are expected to open new markets for the company in fiscal '95 -- especially in Europe.
 Through the acquisition of Teletransaction, the Advanced Research and Development Group (ARD) has been established under the leadership of senior vice president, Dr. Yung Fu Chang. Chang is also president of Teletransaction, Inc.
 Chang recently stated, "The initial release of wireless pen-based prototypes has been successful and that plans for production of the new wireless pen-based portable tele-transaction products in Q4 are on schedule." He further stated, "The development of the next two generations of wireless pen-based products is well under way for pilot release in Q1 of fiscal '95." Chang expects accelerated development and additional investment in a number of new technologies, including matrix barcodes and voice recognition which will be ready for pilot release during the second half of fiscal '95.
 ARD provides the core ASIC designs that drive the uniqueness and low cost manufacturability of the new Pen-Based and Portable Tele- Transaction Computers and wireless products for the future.
 The first vertical marketing and end user sales group involves the formation of the Telxon North American Division which will manage the sales of all products, systems and services in North America.
 This SBG under the leadership of William Murphy, corporate senior vice president, has made the transition to a new dynamic organization managed by seven regional vice presidents.
 Murphy stated, "Total North American Division sales have increased sequentially each quarter this fiscal year. Compared to the second half of fiscal '93, I expect North American sales to increase more than 30 percent in the second half of this fiscal year."
 The North American Division management team includes five new regional vice presidents (promoted from within the company). Rick Cumberland, formerly with ICL Datachecker, was hired as a sixth regional vice president for eastern operations. Tony Ribeiro, formerly a director of retail systems for NCR Canada, was hired as vice president and general manager of Telxon Canada. And Basil Burger, formerly director of systems and service for ICL Canada, was hired as vice president of systems and service for Telxon Canada.
 Murphy further stated, "The Telxon North American Division is strong. Sales are increasing and the ability to provide total solutions to customers in their vertical markets has increased substantially over the past two quarters."
 The North American Division is focusing its efforts on retail markets including, grocery, drug, hardware, mass merchandising, specialty retailing, fast food, warehousing and distribution, route management and sales order entry.
 Telxon RTG (the Retail Technology Group) was formed earlier this year through the consolidation of RMS (Retail Management Systems), RCS (Retail Computer Systems) and Telxon retailing specialists.
 D. Michael Grimes, president of RTG, stated, "The new company has made significant strides in developing and providing advanced retail systems and applications to an expanding base of customers around the world. Software and system sales are brisk and many new strategic partnerships have been developed."
 Telxon International has been formed to manage the sales of all products, systems and services outside North America.
 John Cribb, president of Telxon International, initiated a major management change in Europe with the hiring of Lars-Olof Svensson as executive vice president and general manager of Telxon Europe. Svensson was formerly with Siemens-Nixdorf and most recently served as chief executive officer of Tandy Grid, Europe.
 Cribb reported that while the European economy was weak during the past year, his organization was at an even greater disadvantage because of the need for the new products that will be introduced in Q4 of fiscal '94. These new products include the new 2.4 GHz portable spread spectrum radio and the new PTC-910, 911 and 912 series which will provide Telxon International with a more competitive product line in Q4 of fiscal '94 and fiscal '95.
 Cribb further stated, "With the new products and new depth of executive management for Europe, we expect a 15 percent increase in sales for the second half of fiscal '94 as compared to the same period of fiscal '93."
 In April 1993, Telxon completed the $4 million purchase of Itronix Corporation. Under the leadership of president Lawrence Allman and senior vice president of sales and marketing Steven Gevurtz, Itronix sales have increased dramatically during the first half of fiscal '94.
 Allman stated that, "For the full fiscal year ending March 31, 1994, Itronix expects to increase sales by 250 percent over the previous year. Itronix has a unique position in the marketplace as the dominant Portable Tele-Transaction Computer company for telephone and cable company repairmen, as well as for field service technicians throughout the world."
 Itronix's integration of Motorola's new wide area data radio communicating with the ARDIS network has made a significant impact on sales. Itronix is considered to have the largest installed base of the new Motorola wide area data radios integrated in PTCs in the United States.
 Telxon's Vertical System Group (VSG) was expected to be formed in early fiscal '95. However, a unique opportunity presented itself when Basicomputer was recently sold to Future Now. This transaction made key IBM and Compaq reseller sales executives available. As a result, Telxon decided to accelerate the formation of this new group in Q3 and Q4 of fiscal '94.
 James Cleveland was hired as senior vice president and general manager of Telxon VSG. Cleveland, formerly with IBM was most recently regional vice president of Basicomputer, a major reseller of IBM/Compaq products to the financial, insurance and health care markets.
 Telxon VSG hired Tom Humphries, formerly vice president of product marketing for Grid, as vice president of product management and marketing for pen-based and Portable Tele-Transaction Computer products worldwide.
 Telxon VSG hired John Davis, a 27-year IBM veteran and factory automation specialist. Davis will direct the marketing of Telxon products and systems to the new factory automation vertical market.
 Telxon VSG also announced the hiring of Terry Davidson, a 26-year IBM veteran with 20 years of marketing experience in the health care industry. Davidson has been appointed director of marketing Telxon products, systems and services to the new health care vertical market.
 Michael Riemenschneider, formerly vice president of merchandising for Basicomputer was hired as the new vice president of VSG Channels Marketing for pen-based computers and radio frequency products to reseller and OEM accounts.
 The early formation of the VSG will increase operating expenses for the company ahead of plan for Q3 and Q4. Accelerated sales opportunities for pen-based products to critical new vertical markets in Q4 fiscal '94 and fiscal '95 made this change imperative. Telxon VSG expects sales to reach more than $25 million in fiscal '95. Recent pilot tests of wireless PBC products at a major medical center and a full wireless PBC installation at a major manufacturing company have been successful.
 A significant number of prospects in health care, insurance, transportation and factory automation are scheduled for wireless PBC pilot installations in Q3 with production units scheduled for Q4 of fiscal '94 and fiscal '95. These pilot tests are expected to accelerate Telxon's VSG sales in these emerging markets in fiscal '95.
 The new strategic plan has enabled Telxon Corporation to evolve from a monolithic company into eight major profit centers, each with management in place to drive sales and accelerate profits throughout fiscal '95, '96, '97 and beyond.
 Under this plan a number of corporate personnel are being redeployed to SBG profit centers, while a smaller corporate staff will provide shared resources such as, facilities, administration, human resources, accounting, legal and MIS.
 To strengthen corporate management, Dan R. Wipff, Telxon's president and chief operating officer, announced that Frank E. Brick has been hired as senior executive vice president of strategic business development. Brick was formerly with IBM, Exxon Office Systems and most recently was chairman and chief executive officer of Basicomputer Corporation. At Basicomputer he drove sales of IBM, Compaq and Hewlett Packard products, as well as networking and field repair services from $30 million to a $200 million run rate. Brick will be responsible for the success of Aeronet and the new Vertical Systems Group.
 The management of each SBG understands the importance of increased return to Telxon shareholders and long-term growth for the company. In this regard, the company is looking at a plan where the management of the SBGs would be required to purchase long-term holdings in their own companies, as well as in Telxon Corporation. This plan considers the possibility of Telxon selling portions of their stock in certain SBGs as new companies (i.e., Aeronet) to the public over the next few years.
 An additional plan to make minority investments in strategic VAR and technology companies is under way with the understanding that Telxon would ask for registration rights in the event these companies increase in value and decide to go public.
 In summary, with new management in place across the board, as well as new products and new technology ready for production in Q4 fiscal '94 and fiscal '95, Telxon's new Strategic Plan is moving forward briskly to meet the long-term goals set by management for fiscal '95, '96, '97 and beyond.
 -0- 10/19/93
 /CONTACT: Roger Murphy, vice president, corporate development, or Richard Gurda, vice president, corporate communications, of Telxon Corporation, 216-867-3700

CO: Telxon Corporation ST: Ohio IN: CPR SU:

AR -- CL031 -- 4179 10/19/93 16:32 EDT
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Date:Oct 19, 1993

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