Apr. 25--ALBANY -- Two top executives at Integrated Alarm Services Group Inc. will be replaced next month as the troubled alarm-monitoring company tries to recover from falling revenues.
Timothy McGinn, chairman and chief executive officer, will leave the Albany-based company at the end of May. Thomas Few Sr., president and vice chairman, will leave May 1, the company announced Monday.
Integrated Alarm's board of directors also announced that member John Mabry has been elected non-executive chairman, with the assignment of restructuring corporate management, starting June 1. Also, Charles May -- an alarm executive with more than 40 years in the business -- will become acting president and CEO of Integrated Alarm beginning June 1. He will begin advising the board next week.
The shake-up comes at a time when the company has suffered customer attrition, falling stock value and pressure from stockholders. One investment group, Contrarian Capital Management LLC of Greenwich, Conn., has been pushing the alarm-monitoring company to put itself up for sale. The firm, which owns about 13 percent of Integrated Alarm stock, has sent several scathing letters to the company pushing for a sale -- a move officials said only hurt the business' prospects.
On Monday, Contrarian portfolio manager Jason Mudrick said his firm was pleased with the latest developments.
"I think it's a first step which will lead to the eventual sale of the company," he said. "From our view, it's a good thing."
McGinn and Few were opposed to selling the company, he said.
Integrated Alarm, which will discuss the move in a conference call today, didn't describe the nature of McGinn's and Few's departure.
"John Mabry and Chick May have decades of combined experience in the security alarm industry and both men have been highly successful in building and strengthening companies," said Arlene Yocum, a company director. "The board wishes to thank Mr. McGinn and Mr. Few for their service and many contributions to the company."
During an earnings conference call last month, Integrated Alarm officials said they were taking new steps to deal with their continuing attrition problems. The company promised new employee training, better phones and call monitoring and a new approach to resolving customer complaints.
Integrated Alarm (Nasdaq: IASG) closed Monday at $3.69, up 9 cents.