DENNIS ODA / DODA@STARBULLETIN.COM
New Adtech President Alan Sguigna took over the
company Wednesday after Tareq Hoque resigned
the position, citing "irreconcilable differences"
with parent company Spirent Plc.

Slumping sales
freeze Adtech
as new president
takes over

The firm puts a hold on
new hires, sees no
recovery this year

---

By Rick Daysog
rdaysog@starbulletin.com

Faced with a significant decline in business, Adtech, the high-flying, home-grown technology company, has implemented a hiring freeze and is evaluating other moves to cut costs, according to the company's new president, Alan Sguigna.

In at an event with local business leaders last night, Sguigna confirmed orders from mainland telecommunications customers have fallen due to the overall downturn in the high tech market.

He would not comment on reports that the company is planning to layoff some of its 320 Hawaii employees or move jobs to California. But he said the company remains committed to its Hawaii roots.

Sguigna, the company's former vice president of marketing, was named president Wednesday after the company's former president, Tareq Hoque, abruptly resigned.

He made his first public appearance in his new role at a ceremony last night honoring Hawaii's Fastest 50 growing companies, an event sponsored by Pacific Business News and First Hawaiian Bank.

Sguigna reported Adtech's revenues were down in the second quarter and may not improve until next year.

He noted that Adtech's downturn is mirroring the overall technology sector.

"We are in an overall decline," Sguigna said.

Many of the customers he has spoken with don't expect a recovery in the short term, he said. The downturn in Adtech's fortunes may extend into the year 2002, said Sguigna.

"We are riding in the tunnel longer than we expected."

Adtech, founded in Hawaii in 1967, develops diagnostic software and hardware for network equipment manufacturers and service providers. Recently one of the fastest growing local high-tech firms, the company's annual sales doubled last year to about $150 million while its payroll has zoomed to more than 300 from about 65 in 1997.

The company, which was founded by University of Hawaii professors, was purchased by Spirent's predecessor in 1997 for $51 million.

In May, the company shelved plans to develop an office and research and development complex in Kakaako on land owned by the state. The hiring freeze was imposed shortly thereafter.

Sguigna, who joined Adtech in 1999, is a 15-year veteran of the telecommunications industry. Most recently, he held a management post at Nortel Networks Corp.