VTEL CEO Von Rump Resigns
AUSTIN, Texas — VTEL® Corporation (Nasdaq:VTEL – news) today announced the immediate resignation of President and CEO Stephen Von Rump, whose position will be filled on an interim basis by Richard Snyder, VTEL’s chairman of the board.
The company said a search for a new CEO would begin immediately.
The move came after Von Rump voluntarily resigned his post to see to personal matters. Von Rump had served as VTEL’s CEO since December 1999.
“This was a very difficult personal decision,” said Von Rump. “I have the utmost enthusiasm for VTEL and believe in its future success.”
“I want to thank Stephen for his contribution to this business. He will be missed at VTEL and we wish him nothing but the best,” said Snyder.
Independent Business Units Established
Snyder said he would form a three-person Executive Committee made up of two other outside directors to oversee company operations, which would now be managed as three independent business units — VTEL Solutions, VTEL Products, and ArticuLearn — to provide speed and focus in daily operations.
VTEL Solutions will provide services, integration and products to manage video over enterprise IP networks, and will continue to be led by David Turnbull, VTEL senior vice president.
As the general manager of VTEL Products, Bob Swem and his team will be responsible for all of VTEL’s traditional videoconferencing endpoint products focused on the education and government markets.
ArticuLearn™, VTEL’s e-learning subsidiary, will continue to be managed by its President and CEO Bill McCauslen. ArticuLearn is dedicated to making education and training over the Internet easy, effective and affordable. ArticuLearn presently is seeking funding from outside sources.
The three business units will assume separate profit/loss responsibilities, with particular attention focused on growth and profitability in the business segments that each serves. The company reported significant improvements in operating efficiencies in its second fiscal quarter reported on Feb. 21, 2001.
“Although the current market presents its share of challenges, we believe we are well positioned with a solid balance sheet, strong recent additions to the management team and a new, high-growth market segment to enter,” said Snyder.
Snyder said he has tremendous confidence in the management team’s ability to execute upon the company’s strategic plan for reestablishing growth and profitability. “As a business, VTEL intends to press ahead with our current initiative to become the premier solutions, services and integration company in the visual communications marketplace,” said Snyder.
Based in Austin, Texas, VTEL Corporation is a global leader in designing, deploying and servicing visual communications solutions for enterprise networks. As a pioneer of multimedia-rich PC-based videoconferencing systems, VTEL is applying its quarter-century-long heritage of expertise to develop a common network management platform to drive visual communications compatibility standards for industry-wide interoperability over IP networks. VTEL also offers e-learning solutions through its wholly owned subsidiary ArticuLearn(tm). Visit VTEL’s Web site at http://www.vtel.com for more information.
This release may include projections and other forward-looking statements that involve a number of risks and uncertainties and as such, actual results in future periods may differ materially from those currently expected or desired. Some of the factors that could cause actual results to differ materially include rapid changes in technology, changes in customer order patterns or order mix, the ability to collect certain foreign receivables, foreign exchange rate fluctuations, the intensity of competition, the cost and availability of certain key components, the company’s ability to manage product transitions and inventory levels, product pricing pressures, sudden or unexpected changes in demand for VTEL’s videoconferencing systems, and litigation involving intellectual property and other issues. In addition, notwithstanding the internal control procedures instituted by VTEL, there can be no guarantee that accounting errors will not occur. Additional discussion of these and other risk factors affecting the company’s business and prospects is contained in the company’s periodic filings with the SEC.
VTEL and its logo are registered trademarks of VTEL Corporation.
VTEL also maintains trademarks on the following names: ArticuLearn.
(c)2001, VTEL Corporation. All rights reserved.
VTEL Corporation, 108 Wild Basin Road, Austin, Texas, 78746. Phone: 512/437-2700, Fax: 512/437-2792.
VTEL Corporation, Austin
Michael Russell, 512/437-2354