Parthus to move base to US as executives resign

ParthusCeva will move its corporate headquarters to the US following the resignation yesterday of its Dublin-based chief executive and chief finance officer.

ParthusCeva said the surprise resignations of chief executive Mr Kevin Fielding and chief finance officer Ms Elaine Coughlan were amicable and not based on any disagreements.

The firm, which was formed from the merger of Dublin-based Parthus and Ceva, a division of US-Israeli firm DSP Group, last year, says it intends to hire new management that will be based at the firm's US office in San Jose.

The change of corporate headquarters reflects a shift in ParthusCeva's shareholder base since the merger last November. Four-fifths of the firm's shareholders are based in the US, compared to a 50:50 Europe/US division last November, the company said.

Management would be able to spend more time talking with customers and investors if they were based in the US. But the change would not have any operational impact on the company's operations based in the Republic, Israel or the UK, the company added. The firm employs 125 people in Ireland.

Both executives have agreed to stay with the firm until replacements are appointed.

Under the terms of the ParthusCeva merger agreement, Mr Fielding will net two years' salary worth €280,000 per annum and a pension worth up to €615,000. Ms Coughlan will net up to €500,000 - two years' salary plus pension entitlements.

In an interview with The Irish Times, Mr Fielding said a factor in his resignation was that he did not want to relocate to the US, where he had worked previously as an executive for nine years.

But analysts expressed surprise at the major management reshuffle, which was announced so soon after the completion of the merger.

Mr Seán Murphy, a semiconductor analyst with London-based investment firm Nomura, said the resignations may reflect that US shareholders in the firm had become dissatisfied with the revenue performance of the firm.

"[US shareholders\] may be choosing to blame management rather than the market," he said.

ParthusCeva reduced its revenue forecasts for 2003 to €46 million in December, just six months after predicting full-year revenues of €75 million, citing difficult global market conditions.

Mr Brian Long, the co-founder of Parthus and a significant shareholder in ParthusCeva, yesterday took up the role of interim chief executive.

Mr Long, previously executive chairman at ParthusCeva, also announced his intention to step down as an executive when the new management is appointed.

Parthus co-founder and former director Mr Peter McManamon will replace Mr Fielding as a director. Mr Eli Ayalon, ParthusCeva chairman, will assume executive functions during the reshuffle. Mr Ayalon will resign as an executive but remain on the company's board when the new management team is in place.

Shares in ParthusCeva edged 0.89 per cent higher on the Nasdaq to close at $3.531.