MTC Technologies names new CEO

MTC Technologies Inc., Dayton, Ohio, named David Gutridge as its new chief executive officer. Gutridge replaces Michael Solley, whose resignation as president and CEO becomes effective Oct. 3.

Solley also will leave his position on the company's board. Gutridge will assume the CEO post upon Solley's departure, the company said. Gutridge is chief financial officer for MTC. A search has begun to fill that position.

In a company statement, Rajesh Soin, MTC founder and chairman, said Solley made a "a great contribution in guiding our company through its initial public offering process and our first year of being a publicly traded company."

Solley, who became CEO in May 2002 after joining the company as president in March 2000, said in the statement that it was time for him to move on. Before coming to MTC, Solley was executive vice president of Nichols Research Corp. and helped with the transition when Nichols was acquired by Computer Sciences Corp.

The news of Solley's departure was not greeted warmly by Wall Street. MTC shares dropped more than 10 percent today, trading at around $23 compared to a close of $25.85 Monday.

At least one brokerage firm, Raymond James and Associates, downgraded the company from strong buy to market perform.

"MTCT is well-positioned and the company's more than $1.1 billion in backlog gives us extraordinary comfort in its long-term prospects," the Raymond James report said. "In the short term, however, we think it is more prudent to wait on the sidelines to see what comes of this resignation."

MTC officials declined to comment beyond the statement released Thursday.

MTC, which was ranked No. 96 on Washington Technology's 2003 Top 100, had revenue of $118.5 million in revenue and $7.7 million in net earnings in 2002. In its most recent guidance for 2003, the company said revenue for 2003 would be between $166 million and $171 million, and net earnings would range from $11.4 million to $11.9 million.