The networking equipment manufacturing business is becoming cut-throat as too many companies with similar products chase insuffient business to keep them all in the fashion to which they were accustomed. Proteon Inc is still seeking to recover from the effects of its restructuring in the wake of its second quarter loss of $1.2m, closely preceded by the the resignation of its president and chief executive Patrick Courtin, and although the restructuring costs were absorbed during the first quarter, the knock-on effects were partly responsible for the losses according to Alan Swan, the company’s European General Manager. Indeed, he added that the effects would continue into the third quarter. Coupled with this, the company is blaming aggressive competition in the Token Ring adaptor board market which is still responsible for around half the company’s revenue. According to Swan, Courtin’s resignation was due to the changing nature of the company as demonstrated through the restructuring. He says that Patrick is fundamentally an engineer, and does not have 100% of the skill set for running the business as a marketing and sales organisation. Since Proteon is trying to realign itself into a tighter sales organisation, Courtin felt that he was no longer the right person to be at the helm. A formal search to find a replacement for Courtin is to be undertaken, while in the meantime Elliot Honan, vice-president and chief financial officer, will take over as acting president.
