Atlanta July 3, 2002 It's been a tough couple weeks for providers of enterprise asset management (EAM) solutions. First Peregrine Systems faced accounting questions that prompted a leadership change and the sale of part of its business. Now it's Indus International's turn in the hot seat.
The Atlanta-based EAM software and services provider announced this week that chief executive Kent Hudson, who had served as the company's CEO and president since January 2000, is leaving the company "to pursue other interests."
The company also said its 2002 revenue would fall short of its previous estimates and that it would be cutting its staff.
Indus appointed Thomas Madison as CEO to replace Hudson. Madison had served as chairman of the company's board since December 2001 and will continue in that role.
The shakeup extended to the company's chief operating officer, Richard Beatty, who came to Indus at the same time as Hudson and who has similarly opted to "pursue other interests." As part of a broader restructuring planned for the third quarter, Indus said it is eliminating the COO position.
The company will record a $3.0 million expense relating to the departure of the two executives.
Madison has been on the Indus board of directors since April 2001 and has been chairman since December 2001. He is the former president and CEO of Talus Solutions, which Manugistics acquired in 2001. Prior to Talus, Madison was president and corporate vice president of the financial services group at Computer Sciences Corp. and previously held positions with Gemini Consulting and IBM, where he spent the first 15 years.
"I am proud to be leading the Indus team as we further our focus on the execution of these new strategies to achieve success in the eyes of both our customers and our stockholders," said Madison.
Meanwhile, the company said its 2002 revenues would fall between $115 and $125 million, down from its previous estimate of $135 to $150 million. The company expects to take a third quarter charge relating to unspecified workforce reductions.
The moves come at a time when Indus said its primary markets including utilities, defense, pulp and paper, mining and metals, and oil and gas have continued to suffer from weak capital spending.