LOS ANGELES, CA, May 8, 2003 � Magnetek, Inc. (NYSE: MAG) today announced that Paul Schwarzbaum has been elected an executive vice president of the Company and named president of its Telecom Power Group. In this position, Schwarzbaum will be responsible for businesses that provide power solutions and services to the telecom and datacom markets. Schwarzbaum, 41, joins Magnetek after three years with Corning Precision Lens, Inc., which until late last year was a wholly-owned subsidiary of Corning Incorporated. Most recently, he was vice president and general manager of the Consumer Video Optics business based in Cincinnati, Ohio, which he grew by 85% to over $200 million in sales. Stock opened at $2.49 on May 8. Stock is now $6.28.
This company has shrunk from $2+ billion to under $200 million with Andy at the helm. He is a sharp financial guy but clueless about the Magnetek business. Forget about about the technology guy - he's just collecting a paycheck. He is clueless about managing a business- period. The remainder of this company is made up of two totally unrelated businesses. Unrelated by customers, channel, products... any way you want to look it. Most of it is in Europe with costs in Euros trying to sell to telecom markets in the US. The company is difficult to sell because of all the baggage that comes with it. The management still thinks they are running a $2 billion company and are paying themselves accordingly. More to come.
Are you implying that there is any correlation between the hiring of Mr. Schwartzbaum and the run-up in the stock price? According to comments made during the quarterly conference call, the Telecom Power Group (the business he is the president of) represents 6% of total sales and continues to lose money. How exactly is he impacting the other 94% of the company??