CIMdata PLM Industry Summary Online Archive
27 April 2005
Company News
Intergraph Announces Realignment of Global Operations from Four to Two Divisions
Intergraph Corporation, a leading global provider of Spatial Information Management (SIM) software, announced that, consistent with its Strategic Plan, the Company is realigning its organizational structure and streamlining its global operations from four to two divisions-Process, Power & Marine (PP&M) and the newly formed Security, Government & Infrastructure (SG&I). Intergraph's SG&I division will consist of core operations that previously existed in Intergraph Mapping and Geospatial Solutions, Intergraph Solutions Group and Intergraph Public Safety.
The organizational realignment is intended to: (1) improve the customer focus and responsiveness of the Company; (2) facilitate revenue growth by better leveraging the Company's full range of technology and services; (3) enhance the Company's development capabilities and ability to deliver innovative solutions to its target markets; and (4) reduce the overall cost structure of the Company.
The Company expects the organizational realignment process to be completed by the end of the second quarter of 2006.
Announced separately today, Intergraph reported first quarter 2005 financial results that exceeded guidance for both revenue and operating income. For the first quarter ended March 31, 2005, the Company reported revenue of $136.5 million, an increase of 3.2% from the $132.3 million reported in the first quarter of 2004. Operating income for the quarter was $5.9 million, or 4.3% of revenue, compared to $7.6 million, or 5.7% of revenue, reported in the first quarter of 2004.
"The organizational realignment will provide our Company with a stronger platform to drive future growth initiatives," said Halsey Wise, Intergraph President & CEO. "We believe our new organizational structure will allow us to build customer and shareholder value by more efficiently allocating people and resources to target specific markets where Intergraph has a clear, differentiated value proposition. The realignment is the next step in the execution of our transformation effort outlined in our Strategic Plan."
The organizational realignment will include several changes to Intergraph's senior management team. The Company has appointed Reid French, formerly Executive Vice President of Strategic Planning and Corporate Development, to the position of Chief Operating Officer of Intergraph Corporation. Reporting to Mr. French, will be Gerhard Sallinger, President of Intergraph's Process, Power & Marine (PP&M) division and Preetha Pulusani, formerly President of Intergraph Mapping and Geospatial Solutions. Ms. Pulusani has been appointed President of Intergraph's newly formed Security, Government & Infrastructure (SG&I) division. Ben Eazzetta, formerly President of Intergraph Public Safety, will report to Ms. Pulusani and has been appointed to the position of Chief Operating Officer of Intergraph's SG&I division.
Intergraph's SG&I division will be comprised of five industry-focused business units, including Public Safety & Local Government, Federal Solutions, Military & Intelligence, Utilities & Communications, and Transportation & Commercial Photogrammetry. In addition, the Company will be consolidating certain functions globally and across divisions, such as Human Resources, Marketing, Information Technology, and Finance & Accounting.
"Streamlining our business into two divisions is part of our effort to leverage more effectively our technology and to capitalize on the cross-selling opportunities that exist between our operations," Mr. Wise added. "We believe our new organizational structure will enhance our responsiveness to customer and market demands and increase our ability to deliver innovative solutions to the industries we serve. These efforts, while difficult and challenging, will better position our Company for future growth."
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