New Avanex CEO targets number-two spot
California-based fiber-optic components maker Avanex has appointed a new CEO.
Jo Major, who was most recently general manager of the components business group at JDS Uniphase, will replace the current CEO, Walter Alessandrini, on August 18.
Alessandrini was brought out of retirement by the Avanex board in November 2002 to resume his prior roles of president and CEO, and reshaped the company through the acquisition of the fiber-optic component wings of Alcatel, Corning and Vitesse in 2003.
Alessandrini will now serve as the chairman of Avanex s board of directors.
Major s plan is to try to make up ground on his former employer JDS Uniphase and turn a profit at Avanex. He appears to have a tough job on his hands - although the acquisitions made last year have had a big positive impact on Avanex s revenue, the company is still making a hefty loss.
In the recently-ended fiscal year 2004, Avanex notched up an operating loss of $121.3 million on sales of $106.9 million. Performance at the gross margin level is also still very much in the red.
"I am committed to helping the company accelerate its plan to profitability [and] become the clear number two player in the industry," said the new CEO and president.
Major has plenty of work to do to if Avanex is to get close to JDSU s coat-tails. In a recent analysis by market research company Communications Industry Researchers (CIR), JSDU came out on top as the clear market leader with 19.3% of the fiber-optic components business.
In the CIR report, Avanex was listed in eighth place with a market share of just 5.1%, well behind industry heavyweight Agilent, recently-formed Japanese outfit Eudyna Devices and the likes of Bookham Technology and Finisar.
Avanex s GaAs and InP manufacturing takes place largely at its Nozay plant in France, the site that formerly belonged to Alcatel Optronics. Products include lasers, detectors, pump modules and amplifiers.
