GSE Systems Unloads Software Division
GSE Systems Unloads Software Division By Bob Starzynski Staff Writer Chris Carnavos, who took the reins at GSE Systems Inc. in January, made his first major move toward turning the company around May 4 by selling a business software division to systems integrator Keane Inc.. The Columbia, Md.-based company's Erudite division, which develops client/server and business software, accounted for $18 million of GSE's sales last year
GSE Systems Unloads Software Division By Bob Starzynski
Chris Carnavos, who took the reins at GSE Systems Inc. in January, made his first major move toward turning the company around May 4 by selling a business software division to systems integrator Keane Inc.. The Columbia, Md.-based company's Erudite division, which develops client/server and business software, accounted for $18 million of GSE's sales last year. But it was a digression for the company.
"The problem was they got into new businesses they didn't understand," said Bonnie Wachtel, president of Washington stock brokerage Wachtel & Co. "But they are a real business that has been profitable in the past. If [Carnavos] can keep expenses in line and shop for new partners, this could be a good turnaround story." Wachtel, who frequently invests in undervalued companies and turnaround candidates, has been watching GSE for the past year. Since Carnavos took the helm, the stock has doubled from its all-time low to close at $3.44 May 4. The power plant simulation business, which accounted for part of the decrease in revenue last year, has started off the year on the right foot, with $16 million worth of new contracts already added to the mix. Carnavos also said last month that GSE would reduce its operations in the Asia Pacific, where the company's bottom line was hurt last year with market problems in Asian countries. Carnavos could not be reached for comment on restructuring efforts.
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