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Blue Coat boss walks the plank as profits collapse

Alex Scroxton

Blue Coat CEO Michael Borman has been ditched after just eleven months in the post after the company failed to meet its financial targets during the first quarter of its fiscal 2012, which closed on 31 July.

Borman joined from Avocent last September and at the time was hailed for his executive management skills, but was given his marching orders after the firm's first quarter results came in below expectactions.

"We are taking the necessary actions to reinforce our leadership position in the web security market, while capitalising on opportunities in the WAN optimisation market based on our strong competitive advantages," said chairman David Hanna.

Blue Coat made sales of $109.5m (£66m), down 10.6% year-on-year, while GAAP net income suffered a 70% decline over the same period to $2.7m.

The WAN optimisation outfit blamed weakness in product revenues from the US government.

Borman's replacement has already been named as Gregory Clark, who joins the company from enterprise software company Mincom, which was itself acquired in July by automation and power technology outfit ABB.

Board member Carol Mills will hold the post in an interim capacity until Clark can take up his new post in mid-September.


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