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Cimco Founder to Remain as President, Chief Executive : Management: He says he'll stay on to ensure stability in wake of investors' interest in acquiring Costa Mesa firm.

August 17, 1995|DAN MARGOLIS | TIMES STAFF WRITER

COSTA MESA — Cimco Inc. said Wednesday that it has abandoned its search for a new president and chief executive, leaving founder Russell T. Gilbert as the company's top officer.

Gilbert said he decided to remain on the job partly to ensure management stability in the wake of recent inquiries by outside investors who expressed interest in acquiring all or part of the company.

"The major shareholders in the company requested that I stay on to maximize shareholder value," said Gilbert, who owns about 20% of the company.

In June, the industrial and medical plastics manufacturer had said that it was searching for a new president and chief executive. Gilbert, 65, who founded the company in 1959, planned to become chairman.

But the company disclosed last week that it has received acquisition feelers, and has hired Paine Webber Inc. to evaluate the inquiries.

The company also announced Wednesday that it will not have to revise its previously reported financial results for the fiscal year ended April 30. Two weeks ago, company officials said adjustments could be forthcoming in the wake of new information about a customer's finances.

Cimco has posted losses in the past two fiscal years. The company lost $1.5 million, or 52 cents a share, in the fiscal year ended April 30, compared with a loss of $1.2 million, or 41 cents a share, the previous year. Revenue rose to $83.2 million from $73.9 million.

Analysts said investors might find the Costa Mesa company attractive because of the increasing revenue. The company's stock hit a four-year low of $3.75 a share last month in Nasdaq trading, but has jumped 60% since then. It closed Wednesday at $6 a share, up 12.5 cents.

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