Sarcom Ousts Top Executives

Mills and Berding are "no longer with" Sarcom, said the company, based here. Effective immediately, Randy Wilcox, company founder and board member, will serve as acting CEO, and Chuck Sweet, chairman, will be acting president, Sarcom said in a statement.

A company spokesperson said neither Wilcox nor Sweet would be available for additional comment at this time, and no other details were provided Wednesday. As part of the released statement, however, Wilcox said the changes would not affect the company's strategic focus, its customers or its day-to-day operations.

Sarcom has struggled with an extensive restructuring during the past 18 months, including the layoff of several hundred employees and office closures. During that time, Sarcom also slashed its vendor roster, narrowing it to a group of about 40.

In July, Mills told CRN he led the charge to broaden the company's technology solutions focus, increase its equity base and reduce debt incurred from its acquisition of 10 companies from 1997 to 2000.

Mills said Sarcom exchanged a substantial portion of the debt for equity, leaving the company with $10 million in total long-term outstanding debt.

A source close to the company who requested anonymity, however, scoffed at Mills' claims of turning Sarcom around. He said the technology solutions--wireless, security and storage--Sarcom said it would target are still, in reality, just a tiny fraction of the company's services.

In addition, Sarcom's overall 2002 revenue is tracking down to $300 million in 2002 from $750 million in 2001, the source said.

Sarcom is "typically 60 to 90 days in arrears" on payments to vendors, he said. The company is also "having a hard time making payroll," he said.

The source also said former CEO Mills' claim that 350 employees were laid off during the past 18 months is inaccurate. That number, he said, is closer to 1,000 and includes the closure of two offices--New York and Washington--and the dismissal of district managers in several offices including those in Louisville, Ky.; Nashville and Memphis, Tenn.; Orlando, Fla.; and Los Angeles.

Sarcom executives disputed the information but declined to speak with CRN or to provide documentation about the company's financial condition. But another source close to the company, who spoke on the condition of anonymity, said the company's revenue for 2001 was closer to $500 million than to $750 million and that the company is tracking a revenue figure just higher than $300 million for 2002. In addition, the source said Sarcom reduced its head count by about 500 during the restructuring.

Mills could not be reached for comment.