Just two months into his term as CEO of Solution 6, Neil Gamble has announced an extensive reform of the company's various business units to bring the company into profitability next year.
Solution 6 has announced a first-quarter loss of $3 million and withdrawn its expectation for profitability this year, instead forecasting a $16 million loss. Gamble blames these losses on the dot-com stock slide since April, a lack of management accountability and failed acquisitions.
"The company has grown too quickly, and has not been able to bed down acquisitions as it should have done," he said.
In response, Gamble has issued an ultimatum to the management of each Solution 6 business. He now requires managers to be responsible for the bottom lines of their business units, has frozen all non-revenue creating expenditure and is considering putting those businesses that are not performing on the market.
"I expect each of these businesses to start to turn in the results we expected when we acquired them," he said. "Those businesses that cannot be turned around, or those that don't fit our core business, I will look at them with an eye to possible divestment."
Gamble expects each of these companies to be profitable by the next calendar year, but will decide the possible divestment of those that fail on a "case-by-case" basis.