McGuire Out As CEO At RMG Networks
July 24, 2014 by Dave Haynes
News is out that Garry McGuire has resigned as President and CEO of RMG Networks, and an interim guy is in place, effective immediately.
It is probably not all that shocking given that RMG’s last quarterly results statements redefined ugly, and the share price free-fell that day. While it has come back quite a bit, it has a long way to go.
It probably also didn’t help that the media side of the company has some very large payment guarantees in contracts with venues, which would be tough or impossible to meet without borrowing money.
A press release says:
Robert Michelson, 58, as interim president and interim chief executive officer, effective immediately. This appointment follows the resignation of Garry K. McGuire Jr. as the company’s president and chief executive officer and his resignation from RMG Networks’ board of directors to focus on other professional opportunities. The board of directors expresses its appreciation to Mr. McGuire for his services to the Company and wishes him success in his future endeavors.
In addition to Mr. Michelson’s appointment, the Company also announced today that Loren Buck has been promoted to chief operating officer from executive vice president of strategy and business operations, effective immediately.
These two announcements come quickly after the Company’s hiring of Scott Pawloski from Microsoft to lead the sales efforts of its media business unit and David Mace Roberts from Samsung as its new general counsel. They also follow the Company’s completion of an amendment to its credit facility that added capital and provided enhanced operational flexibility.
Executive Chairman Gregory H. Sachs commented, “The board is extremely pleased that a senior executive of Bob’s caliber is now leading RMG Networks. Bob comes on board at what we believe will be an inflection point in our history as we move to further establish the Company as a clear leader in market-defining intelligent visual communications solutions. We have bolstered our balance sheet and put ourselves on a sound footing financially. We have also strategically added or promoted senior sales and operational talent. These changes are intended to strengthen the organization in order to capture our market opportunities at a time when we are beginning to realize returns on past growth investments. We expect that Bob’s leadership combined with these other strategic efforts will enhance our ability to deliver on our financial and strategic objectives.”
Mr. Michelson joins RMG Networks with over 35 years of relevant industry experience with the last 24 years in senior leadership positions. Most recently, Mr. Michelson held senior management roles with leading technology and technology services companies including Share Rocket, Goliath Solutions and IXL. As an operating partner at Sterling Partners, he served as lead director helping companies enhance their operational effectiveness and realize their full potential.
“I am excited to be joining RMG Networks and I look forward to working closely with our board of directors, executive team and all of our employees to further execute on the Company’s long term strategic plan,” Mr. Michelson commented. “The market opportunity before us is substantial and we will maintain our focus on moving aggressively and strategically to grow profitably and maintain market leadership. I look forward to providing updates on our efforts during the Company’s upcoming Q2 earnings call.”
It doesn’t look like Michelson has much if any experience in the media or signage software businesses, which depending on your view of the world, could be good or bad.
I was out to see RMG’s new briefing center in Dallas this spring and was impressed by how it was put together, and though the software side of the business formerly known as Symon was heading in the right direction. But really bad financials (and thinking the next set are maybe not looking much better), something was going to happen.
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