Atex changes chiefs

By: Jim Rosenberg Atex changes chiefs

Revived software firm moves Mihalchik out, Weltchek in
The chief executive credited with fixing a "troubled" Atex Media Solutions Inc. during his 21/2-year tenure at the top ? by putting the Bedford, Mass., publishing software company on a sound financial footing and initiating credible product development ? has turned the reins over to a consultant from a firm he retained to advise on business strategy.
Karen Weltchek was named Atex president and ceo last month, succeeding Larry L. Mihalchik, who resigned. An Atex spokesman cited "a mutual agreement between the board and Larry" regarding his departure. Since the
beginning of the year, Weltchek has led Atex strategy development as a consultant with McKinsey & Co., for whom she specialized in assisting technology
companies.
A management consultant since graduating from Harvard University 10 years ago, Weltchek earned her master's degree in business administration from Stanford University. Fluent in Spanish, French, and German, the New Jersey native served U.S. and European clients in the health care, pharmaceutical, entertainment, and travel industries from McKinsey offices in Boston and London. She earlier worked for firms that have since become part of Mercer Management Consulting, where she developed strategies for shrinking clients' marketing and research-and-development cycle times.
Mihalchik "achieved his dual objectives of turning the company around and positioning it for the future," says Weltchek, quoting a statement attributed in a press release to new board chairman Knut Holli, executive vice president of Kistefos Industrial Group, Atex's largest shareholder. Mihalchik also had served as chairman.
Among changes effected under Mihalchik: a new-generation multiple-media publishing system brought from the drawing board to beta testing, a stash of cash at the ready after a profitable 1998 on 35% higher revenues, and staffing growth from 345 to over 500 employees.
Asked whether Weltchek ? with only seven months as an Atex consultant and no background in writing, selling, or using professional publishing software ? was appointed on an interim basis, an Atex spokesman says only that "she's coming in to take a new direction," focus on Internet strategy, and examine the company in its entirety.
Atex announced, however, that it promoted company veteran Max Coebergh from international operations senior vice president to global media operations president, with broader responsibilities for international and North American operations, engineering, and marketing. While its engineering and sales chiefs remain, says Weltchek, Atex is still seeking a new marketing vice president to replace Allen Miller, who left the company last winter.
"I think folks in the apsu community were shocked at the change at Atex," says Gary Ward, president of the Association of Publishing Systems Users, successor to the Atex Newspaper Users Group.
Saying his group knew little about the appointment just days after it was announced, Ward, the information systems development manager at The State, Columbia, S.C., adds that, although the change "sounds like an interesting business direction," he thought "everyone was comfortable working with Larry Mihalchik," and that several Atex staffers with whom he'd spoken "were also shocked about the sudden turnover."
Still awaiting word from Atex two weeks after it announced its new ceo, apsu members, says Ward, remain "a little gun-shy" about such changes, given the vendor's turbulence since its sale by Kodak, and especially in view of Mihalchik's success in "pulling them out of that" turmoil after Norway's Sysdeco changed its mind about owning the
business.
In taking over as ceo and board member, Weltchek emphasizes a "commitment ? to serving our traditional newspaper customer base." When Atex introduced its cross-media Omnex publishing system this spring (E&P, July 3, p. 38), executives said the company also sought business in other media markets and noted a blurring of media-specific distinctions among companies. On this, Weltchek cites "the business challenges, the technology developments, the regulatory changes in the whole media industry.
"Any vendor that doesn't contemplate what that means for their business," she continues, "risks being a buggy-whip company." As a result, she adds, Atex is trying to be "proactive" in looking at the challenges facing its customers.
As ceo, Weltchek says she foresees "no radical difference ? regarding the direction of the company," no change in supporting old and new customers, and no change to the timetable for Omnex, which is now installing at the Financial Times, London.
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