LONDON ARC International's board of directors has fired Bob Terwilliger, the company's chief executive officer, during the continuing difficult times for the company, a licensor of configurable processor intellectual property.
The company announced the termination of Terwilliger's contract along with new guidance for stockbrokers. The company forecast its sales dropping to less than about $3 million in the third quarter as licensing deals that the company hoped to sign are deferred. The sales figure is down on the company's second-quarter revenue of about $5.1 million.
Terwilliger's departure follows by about a week that of Jim Turley, the firm's senior vice president of technology.
John Stockton, a veteran of Motorola and VLSI Technology who was ARC's non-executive chairman, becomes interim chief executive officer and Jan Tufvesson, a non-executive director, has been made non-executive chairman.
"Bob didn't resign. His contrac t was terminated by the board," said Simon Poulton, ARC's chief financial officer.
"Bob specialized in startup businesses. The board decided that, after a period of eleven months after the IPO [initial public offering], it was in the best interest of the company to appoint a new CEO. We are looking for a senior industry figure with plc experience."
Poulton said the company's licensing program for its configurable core had run into difficulties because contracts are taking much longer to sign.
"Decisions that would have taken three months last year may now take up to nine months," said Poulton.
According to Poulton, Stockton has developed a number of strategic options for the company, which include the possibility of a private sale to one of its licensees.
"The board is aware it should consider all options," said Poulton. He added that the company is likely to focus on vertical market applications as the result of Stockton's work.
"John has produced a strategy that is not radicall y different but is vertical-market based."
Although the new senior managers are based in the United States, Poulton said the company's engineering base would not move out of the United Kingdom, but that the sales and marketing operation would shift largely to the West Coast of the United States.