SPECIAL REPORT: OC 50 – Technology
Profiles of the County’s most influential business people
JAMES F. ALBAUGH
Senior Vice President,
The Boeing Company
CEO, President,
Boeing Space and Communications
Born in Richland, Wash., May 31, 1950
Lives in Seal Beach
Said to be on shortlist of contenders for Boeing’s top job, right now has hands full trying to revive Space and Communications business amid downturn in commercial satellites.
Seal Beach operation counts nearly $10 billion in yearly sales, 38,000 workers.
Despite near-term slowdown, seen as key driver of growth for aerospace, defense superpower.
Blue-sky guy: sees space services,airline Internet service, digital movie distribution, air traffic control,as long-term profit drivers.
While seen in running to eventually replace Chairman, CEO Phil Condit, observers say McDonnell Douglas alums hold sway. Albaugh hails from Rocketdyne, part of Rockwell International until Boeing bought defense arm in 1996.
Reworking business by merging facilities, cutting jobs, streamlining design, production, mostly in El Segundo, Torrance. Directs nearly a quarter of Boeing’s global workforce. More than 14,000 work in Huntington Beach, Anaheim, Seal Beach.
Under him, Space and Communications has grown to be player in several key markets, including commercial, government satellites, human space flight, launch services, battle management.
Defense pickup helping cushion commercial blow. Recently named lead integrator for Army’s Future Combat Systems. Sees sales to Defense Department growing in double digits in next 10 years. Missile defense generated $2.2 billion in revenue last year.
Career spans more than 26 years. Prior to current job, was president of Boeing Space Transportation, which was folded into Space and Communications. Before that, served as president of Rocketdyne Propulsion & Power in Canoga Park, now part of Space and Communications. Joined Rocketdyne in 1975 as project engineer.
Gold-and-Silver-Knight of the National Management Association. Named NMA’s Executive of the year in 1999. Fellow of American Institute of Aeronautics and Astronautics, elected member of International Academy of Astronautics.
Recently awarded Bob Hope Distinguished Citizen Award by National Defense Industrial Association. Also a member of American Astronautical Society, Air Force Association, California Business Roundtable. Director of several companies, charitable organizations.
Wife, Audrey; no children. Enjoys golf, boating, snow skiing.
,Chris Cziborr
DWIGHT W. DECKER
Chairman, CEO
Conexant Systems Inc.
Born in Brandon, Manitoba, March 18, 1950
Lives in Irvine
Metamorphosis is good. Changing big OC chipmaker into four smaller ones: networking, wireless, chip production, old-line Conexant business.
Seems to have pulled through dire chip slump by slashing 1,500 jobs, selling off chip production business, striking deal for wireless sale. After year of plunging sales, big losses, reported 5% revenue gain in recently ended quarter vs. preceding one,first in a year. Still weathering downturn that has hit company harder than others.
Market value gradually growing: $3.28 billion at a recent check, up from $2.1 billion a year ago. Still far off glory days of $12.2 billion.
Corporate agitator. Nearly got fired from Rockwell a decade ago for insisting his unit shift away from bread-and-butter custom chip business to make own line of modem chips, years before the Internet entered mainstream. Gambit paid off. He still plays role of corporate prognosticator. Business Journal’s businessperson of the year in 1999.
Fiercely competitive. Battled 3Com over modem standard in the 1990s, only to see U.S. market for dial-up modems plunge. Former math teacher. Oversaw Conexant’s first metamorphosis when it spun off from Rockwell International in 1999. Demanding on workers. Said to shout in company meetings when disappointed. Otherwise cordial, professorial.
Has come long way from rural Canadian upbringing. Bachelor’s in physics, math from Montreal’s McGill University, doctorate in applied math from Caltech. Was a math prof at North Carolina State, Raleigh, from 1978 to 1984; took a sabbatical with modem maker TeleBit in Silicon Valley, fell in love with corporate life.
Joined Rockwell in 1989 as director of data modem products engineering. Made VP, GM of digital communications division in 1993; became Rockwell Semiconductor Systems president in 1995. Big donor, particularly to UCI. Regularly plays in charity basketball benefit. Team won this year. Active politically: lobbied Sacramento on power issues, Washington on broadband.
Wife Silla, newborn son. Enjoys spending time with family. Recently took RV trip across California desert, Las Vegas.
,Andrew Simons
HARSHAD K. DESAI
Chairman, CEO, President,
QLogic Corp.
Born in Abrama, Gujarat, India, March 13, 1946
Lives in Laguna Beach
Company holding up relatively well in tech downturn, like former parent Emulex. Scored big coup when Cisco recently tapped QLogic as storage partner after falling out with rival Brocade.
Seen big customers,Sun, Compaq, Dell, others making up 90% of sales,hit hard times. Signs of pro-gress lately though from bellwether EMC.
Longtime ally, CFO Tom Anderson, stepping down this year. Tapped SanDisk vet Frank Calderoni to fill shoes. Since Sept. 11 attacks, sold nearly a quarter of his QLogic holdings in diversification bid.
Oversaw company’s Cinderella stock showing,shares ballooned more than 1,000% from May 1999 to March 2000. Shares have bounced back some 400% from September low.
Ranked among Forbes 200 Best Small Companies in America for 2001. Helping QLogic become key player in fibre channel,high-speed link behind new economy necessities such as storage-area networks, network-attached storage. Says 2000’s big buy of Ancor Communications paid off by rounding out product line.
Hired in 1995 as QLogic’s interim CEO, has left a clear mark as company goes from awkward beginnings to big growth. Considers himself more engineer than executive. Recently paid tribute to mentor Gary Liebl at Forum for Corporate Directors event.
Guided QLogic from adolescence to 165,000-square-foot headquarters in Aliso Viejo, prestigious listing on Nasdaq 100 index. Along with Emulex, has helped OC become powerhouse in fibre channel, a market that has grown from about $670 million three years ago to an expected $4 billion this year.
Master’s in electrical engineering from UC Berkeley. Was engineering manager at Unisys for 10 years before joining QLogic in 1990. Left in 1995 to become VP with Western Digital. Lured back to QLogic a few months later after abrupt exit of then-CEO Mel Gable. Board said to have come around to his way of thinking. Post made permanent in 1996.
Recently named a director of the year by Forum for Corporate Directors. Company is finalist for AeA award next week. Director, Microsemi, Lantronix. Member, TiE, group of Indian, Pakistani tech professionals.
Wife Anjanna, two grown children. Used to like skiing and tennis but plays more golf now.
,Andrew Simons
Robert “BOB” G. Deuster
Chairman, CEO,
Newport Corp.
Born in Milwaukee, June 17, 1950
Lives in Coto de Caza
Soft-spoken exec who’s transformed sleepy scientific company into more sprightly maker of production gear for chips, fiber-optics. Latest move: selling off old-line metrology, or measurement, business.
Former General Electric engineer says he’s gotten pretty good at striking deals: “It’s hard to hoodwink me.”
Rode wave of investor exuberance for fiber optics in 2000, and then came back down to earth. Shares back slightly from last year’s lows.
Company started in 1969 as Newport Research Corp. First products were steel-clad, honeycomb-core tables designed to isolate laser tests from vibration. In 1971, began distributing products through Newport Catalog, a recognized source for precision electro-optic, opto-mechanical products.
Deuster built up fiber-optic unit in 1996. Took two years for the unit to make a profit, but became a hot seller before fiber bust.
Passionate, competitive. Good about sticking to plan once it is laid out. Likes to shop. Bought three companies in past 12 months. Latest buy of Massachusetts’ Micro Robotic Systems closed in less than three weeks. He, CFO Charles Cargile make up crack integration team.
Casual around the office. Walks around halls to see what employees are working on.
Spends 30% of his time traveling. Regular at investor conferences. Enjoys sailing, golf. Wife Patti, two children, Patrick, 17, Betsy, 14.
Holds bachelor’s in electrical engineering from Marquette University, Milwaukee.
,Andrew Simons
Paul F. Folino
CEO, President
Emulex Corp.
Born in Seattle, Jan. 23, 1945
Lives in Coto de Caza
Prominent tech exec and big arts supporter stepping into eye of social storm as chairman of Performing Arts Center board. Takes place of Tom Tierney, who stepped back amid Broadcom lawsuit brouhaha.
No. 14 on Busin-essWeek’s list of top paid execs in 2001 at $55 million. Has watched company’s shares grow fivefold since Sept. 11.
Planning move to new campus to be built on former Costa Mesa farmland. Expects to go from 200 OC workers to 275 in next year or so. New campus being built to hold 600.
Awaiting tech upturn. His maker of data storage components won praise from analysts for handily beating estimates despite downturn at big customers IBM, Compaq, EMC.
Has overseen company’s growth from quiet maker of printer networking cards to leading maker of fibre channel gear for storage networks. Counted $245 million in sales last year, up 75%. In 1994, oversaw spinoff of QLogic, which today has higher market value than former parent.
Received kudos for quick response to fake news release in 2000 that sent shares plummeting before he took to the airwaves.
Techie philanthropist. A $10 million donation landed name on South Coast Repertory’s Folino Theatre Center. SCR board president, term ends in July. Heading up theater’s fundraising bid through 2003. As PAC chairman, seen as peacemaker. Underwrites Candlelight Concert.
Gave $2 million to Chapman for Acquatic Center that will bear family’s name. Gave $500,000 to Chapman film studio, another $500,000 to Ocean Institute for new children’s technology center that will sport family’s name.
Underwrote benefit at Chapman featuring Arnold Schwarzenegger, Maria Shriver that raised $650,000 for after-school safety ballot initiative.
Big giver to Republican candidates, including President Bush. New Majority member.
Graduated cum laude with bachelor’s from Central Washington State University. Received MBA from Seattle University. Prior to Emulex, worked for Boeing, Xerox, Thomas-Conrad. Advisory board member of JatoTech Ventures, an Austin, Texas, venture firm. Chapman board of trustees.
Has ranch next to Celine Dion in Las Vegas. Likes golf.
Wife Daranne, daughter Courtney, 15.
,Andrew Simons
KENT B. FOSTER
CEO, Ingram Micro Inc.
Born in Concord, N.C., Sept. 23, 1943
Lives in Dallas
MICHAEL J. GRAINGER
President, Ingram Micro Inc.
Born in Birmingham, Ala., June 17, 1952
Lives in San Juan Capistrano
Foster is OC’s Texan. Tall, white-haired former Air Force captain lives, works in Dallas. Still visits Santa Ana often. No plans to get a home here, aides say. Local lieutenant, fellow Southerner Grainger, handles day-to-day.
Tough decision-ma-ker. Several rounds of layoffs, facility consolidations designed to save technology distributor $10 million yearly. Despite soured e-commerce bet, company still handles logistics for big tech names such as Dell. Bolstered Ingram’s products and services, including easier lending, more high-end security products, expanded support.
Company hit hard by tech slowdown. 2001 sales down 18% to $25 billion, still enough to be OC’s largest public company by sales. Employs more than 3,300 in OC (14,500 overall). Recently closed Fullerton plant, sent some work to Mira Loma.
Longtime telephone industry veteran described as “intensely private” but personable. Rejected several offers before signing on to replace prior Ingram CEO Jerre Stead. Started at GTE as engineer, worked way up to president in 1995. Left after Bell Atlantic bought GTE. Helped modernize GTE, fought for right of phone companies to buy cable operators.
Pictures of friends, children, grandchildren dot office. At an executive retreat, lightened things up by having team come in costume. His getup: 007.
Bachelor’s in electrical engineering from North Carolina State University, master’s in management from USC. Began career at GTE in Southeast in 1970 as supervising engineer, named vice president, operations in 1976. Until 1999, was GTE board member since 1992, vice chairman of the board since 1993.
Director, Campbell Soup, J.C. Penney, New York Life Insurance, Dallas Symphony Orchestra, Dallas Opera. Co-chairman, Global Technology Distribution Council. Wife Jodick, two grown children.
Accountant Grainger a crackerjack on the books. Moved from CFO to No. 2 spot last year. Oversees overall direction of company’s operations around the globe. Regional presidents report to him, he reports to Foster.
As CFO, saw Ingram through 1996 public offering, worked as controller for former parent Ingram Industries.
Before Ingram, spent a year with Massachusetts’ Sullivan Graphics as CFO of company’s book group. Before that, CFO for Coble Systems, a truck leasing company. Began career at Price Waterhouse in 1973 to 1980. Graduated with bachelor’s from the University of Montevallo in Alabama.
Wife Donna, two children. Sports fan, likes Alabama Crimson Tide. History buff: into Civil War, WWII, watches lots of History Channel. Likes NASCAR racing.
,Andrew Simons
HENRY “NICK” NICHOLAS III
Co-Chairman, CEO, President,
Broadcom Corp.
Born in Cincinnati, Oct. 8, 1959
Lives in Laguna Hills
HENRY SAMUELI
Co-Chairman, VP of R & D;,
Chief Technology Officer,
Broadcom Corp.
Born in Buffalo, N.Y., Sept. 20, 1954
Lives in Corona del Mar
Still flexing muscle. Despite downturn, duo has made five acquisitions in past eight months. Bought 21 companies since 1999.
Most recently bought Santa Clara-based MobileLink, Santa Ana-based KimaLink, Fremont-based PortaTec. Starting to grow again. Company recently reported 5.3% sequential sales increase from fourth to first quarter, the company’s second after a year of declines.
Though fewer expensive cars in parking lot, Broadcom still OC’s most valuable company with $9.5 billion market value at recent check.
Stock has climbed some 32% since September low. Both men have sold some shares, seen deals dilute ownership: each now owns 13% vs. 17% last year. Combined stake of $2.4 billion at recent check. 2001 sales of $962 million, down from $1.1 billion a year prior.
In middle of OC bonfire of the vanities: found themselves in headlines earlier this year after group of prominent businesspeople, philanthropists sued company for stock drop, accounting practices. Sent waves through arts community, where two have been big givers. Both resigned Performing Arts Center board seats. Made both men livid. Say they’ll fight suit.
Pair won first round in legal fight against Intel, an early investor turned rival. Second trial due this year, if they don’t settle. Intel claims entire company based on its patents.
Flamboyant, strident, hard-driving Nicholas (“Nick”) is athletic 6-foot-6-inches. Weightlifter.
Still in corporate fast lane with a taste for skiing, scuba diving, exotic cars. Parties at 15,000-square-foot wired hilltop mansion are bane of neighbors. Former Air Force Academy student. Was Samueli’s first Ph.D. student at UCLA before turning business partner. Wife Stacey, three young children.
Samueli, married to wife Susan with three children of his own, quiet, more subdued. Big donor to the University of California’s Irvine and L.A. campuses. Also made Chapman donation. He and wife gave around $10 million, land for Samueli Center for Progressive Judaism going up in Irvine. Described as engineering genius.
Before starting Broadcom, pair worked together at TRW designing ultrafast chips for the military. Helped start PairGain Technologies of Tustin, now part of ADC Telecommunications.
,Andrew Simons
JAMES COOPER MADDEN
Chairman, CEO, President,
Exult Inc.
Born in Glen Cove, N.Y., June 18, 1961
Lives in Newport Beach
Found dot-com idea that stuck.
Started Exult with investment firm General Atlantic Partners in 1998, betting big companies would outsource HR with promises of big savings, efficient, Web-based operation. Went public in 1999, counts market value of $1 billion at recent check.
Watched as stock dove 36% in largest plunge in company’s three-year history because post office glitch delayed mailing of Bank of America share-sale notice to the SEC. BofA, also an Exult customer, called stock sale routine portfolio reshuffling.
Deals with big names have pushed annual sales up to $273 million with first profit expected by June. Expects to hit $1 billion in yearly revenue in less than three years.
A consummate dealmaker, personally has landed blockbuster contracts to manage HR functions at BP, Prudential Financial. In the past six months, company signed multiyear pacts worth $1.8 billion.
Soft-spoken, even-tempered. Likes to meet prospective clients for casual dinner, lunch, sans PowerPoint presentations. Not a techie. Sports a goatee.
Boating enthusiast from his youngest days. Originally attended small East Coast school for designing boats. Decided to pursue business after instructor asked if he wanted to design boats or own one.
Received business degree from Southern Methodist University in Dallas. Also received bachelor’s in geology, which he says he hasn’t used a day in his life. Recent winner, Business Journal’s Excellence in Entrepreneurship Award.
Wife Heather, daughter. Spends winters skiing, summers sailing.
,Andrew Simons
MATTHEW MASSENGILL
Chairman, CEO, Western Digital Corp.
Born in Placentia, 1962
Lives in Laguna Niguel
Local boy makes good.
Since taking over two years ago from longtime chief Charles Haggerty, has done what some analysts see as masterful job of stopping losses, finding markets beyond computers for disk drive maker. Added chairman’s title in November.
Just posted second-straight profitable quarter after three years of losses. Former money-losing drive business now profitable for six quarters. Since Sept. 11, shares up nearly 135%. Rival Maxtor’s stock only back 47%. Quantum’s up just 23%.
Cost-cutter. When he took over, company was retreating from costly move into high-end drives for servers, other business computers. Then PC sales slowed, forcing Massengill to lay off nearly 400 workers, close Minnesota plant, shift work from Singapore to Malaysia. Also moved Western Digital out of high-rent Irvine Spectrum tower to Lake Forest.
Set up other businesses in a bid to diversify from PCs. SageTree makes supply-chain management software. Keen Personal Media makes set-top box products. Sold SANavigator to McData, Connex to Quantum. Landed potentially lucrative deal with Microsoft to make drives for Xbox, though sales outlook for game console has been curbed.
Recently bought 155,000-square-foot desktop drive plant in Thailand from Fujitsu.
Began career at Western Digital in 1985 as a product engineer. Held various engineering, marketing positions. Named vice president, marketing for the personal storage division in 1994. Three years later was named senior vice president, general manager of now-defunct enterprise storage group.
In 1999, appointed executive vice president, worldwide operations. Four months later took over as chief operating officer.
Soft spoken, even-tempered. Engineering degree from Purdue University in 1983; in 1988 received Purdue’s Outstanding Engineering Alumni award. Wife Bernice.
,Andrew Simons
LEE D. ROBERTS
Chairman, CEO,
FileNET Corp.
Born in Southampton, England,
Jan. 8, 1953
Lives in Irvine and Seattle
Runs OC’s largest software company by revenue and staff with 786 OC workers, 1,738 worldwide.
Steered company from roots in document management,scanning of paper,to focus on network data.
Latest move: April’s $10 million buy of Bethesda-based Engrail Inc., maker of software that allows companies to easily update Web pages.
Company among the last local techs to succumb to downturn, one of the first to see an up tick. Recently reported second-straight profitable quarter after year of losses. Last year, company cut 10% of work force, or about 170 people.
Sales fell to $332.5 million in 2001 from $398 million in 2000. Company lost $16.6 million vs. profit of $38.5 million a year earlier. Sells to more than 3,000 customers, including Automobile Club of Southern California, Ingram Micro, Mercury Insurance, Orange County Superior Court, PacifiCare, Southern California Edison, UCI.
Tough market forced Roberts to nearly cut bonuses last year.
Ended up paying them after workers complained. Closed offices twice for one week last year to save money.
Has led move to globalize FileNET’s sales, marketing, support, build on company’s presence in more than 92 countries. Met with Prince Charles two years ago as part of a technology training program in Britain.
Joined company as president, COO in 1997. Named CEO in 1998, chairman in 2000, replacing founder Ted Smith.
Roberts spent 20 years at IBM in a variety of sales, marketing, product, general management roles.
Earned two bachelor’s from California State San Bernardino, MBA from UC, Riverside.
Up for AeA High-Tech Award next week. BridgeGate 20 honoree last year.
Named one of two CEOs of the year by Software Council of Southern California two years ago.
Engaged. Two daughters from prior marriage: Heather, 24, Hillary, 16.
Enjoys climbing, mountain biking, hiking, swimming. Has run 30 marathons, competed three times in the 100-mile run through the Sierras.
Finished the Iron man triathlon several times. Everest still a dream.
,Andrew Simons
VINCENT C. SMITH JR.
Chairman, CEO,
Quest Software Inc.
Born in Baltimore, Feb. 8, 1964
Lives in Newport Beach
Call him Vinny. OC’s kickback software CEO. Said to regularly come to company’s Irvine Spectrum tower office in jeans, T-shirt, cap.
Swimming against tech tide: Grew sales 48% to $245 million in 2001. But net loss of $55 million up from $25 million in losses a year earlier. Says “cutting costs without cutting people.” Counts 1,000 workers, 560 in OC, both unchanged from year earlier. Two years ago, hosted lavish company holiday party at Venetian in Las Vegas. No party last year.
Felt Sept. 11 fallout: several customers were based in WTC. Seen Oracle go from partner to rival in database management. Now selling products for managing databases running under Microsoft software. Ranked among Software Elite on Forbes ASAP Dynamic 100 listing.
Wall Street has pummeled Quest’s market value in past year with shares closing down some 47% from a year ago. Still boasts recent market value of $1.3 billion.
In December, Smith sold 100,000 shares worth $2.5 million in planned sale. Still owns 34 million shares, mostly through family trust. No. 6 on Fortune’s “America’s Forty Richest Under Forty.”
Became multimillionaire (and, for a few days, a multibillionaire) when company went public in 1999.
President David Doyle labored for years to build business for once-obscure Irvine-based company. He started Quest in 1987 with a business associate who has since cashed out.
Things changed when Smith, an investor who had made his fortune founding his own technology company, grew bored with Colorado ski slope. Replaced Doyle as CEO in 1997.
In 1992, helped start Patrol Software, bought by BMC Software in 1994. Served as BMC’s director of open systems, managing sales operations. Worked at Oracle from 1987 to 1992 in sales management positions.
An Ernst & Young Entrepreneur of the Year in 2000. Adviser, OpenDesign Inc.
Spends much of off time with wife, two children, often on ski slopes.
,Andrew Simons
JOHN TU
President,
Kingston Technology Co.
Born in Chongquing, China, Aug. 21, 1941
Lives in Palos Verdes
DAVID SUN
Chief Operating Officer, Vice President,
Kingston Technology Co.
Born in Tai-Chung, Taiwan, Oct. 12, 1951
Lives in Irvine
Can’t be nice all the time. As prices for computer memory products dove last year, duo fabled for generosity was forced to cut some benefits, halt bonuses and lay off people for first time in company history.
Back in 1996, made national news by handing out $100 million in bonuses to workers after selling 80% of Kingston to Softbank. Two bought back Kingston in 1999 for fraction of what Softbank paid. Said Tu of the buyback: “Kingston is a family, and you don’t walk away from your family.”
No. 63 on Fortune’s 2001 list of 100 Best Companies to Work For list, down from No. 33 a year earlier, No. 2 in 1997, after bonuses. Not just money: workers talk of quiet gestures, paying for a funeral or for care of employee with cancer.
2001 sales of $900 million, down from $1.6 billion in 2000. Say they saw good first quarter. Employs 924 locally, 1,103 worldwide. Thanks to the repurchase, easily OC’s largest minority-owned company in sales.
Sells to big companies needing memory, and via partnership with Intel. All sales come from memory products since company cut computer peripherals, processor upgrades. Founders have investments in Personable.com, application service provider that specializes in hosting Microsoft Office applications, and Payton, Kingston sister company that does semiconductor packaging.
David Sun once challenged Sun Microsystems’ Scott McNealy to golf game to settle a lawsuit. In early ’80s, duo founded Camintonn in garage; lugged around memory chips in back seats of their cars. Became division VPs when AST Research bought Camintonn. Left to start Kingston in 1987 after losing $7 million in Camintonn proceeds after entrusting money to a friend.
Corporate yin and yang: Tu soft-spoken public face, Sun boisterous operations man. Seldom wear ties, sit in cubicles with other employees. “Best leader is the one people don’t know is there,” Tu says. Workplace is global melting pot; 18 languages spoken, English classes offered.
Both have electrical engineering degrees, Tu from Technische Hochschule Darmstadt in Germany, Sun from Taiwan’s Ta-Tung Institute of Technology. Tu moved to U.S. in 1972, Sun immigrated in 1977. Tu’s wife Mary; two children. Sun’s wife Diana, two children. Tu plays drums, likes Elvis, tells jokes. Sun an avid golfer.
,Andrew Simons
