Jan 26, 2007 (11:01 AM EST)
NEC To Merge Display, Projector Units
Read the Original Article at InformationWeek
NEC said Friday it plans to merge its projector and desktop display/large-screen LCD units into one company, a move that includes combining the channel groups of each entity.
Plans call for the Itsaca, Ill.-based units, NEC Viewtechnology and NEC Display Solutions, to become one company starting April 1. Yoshiaki Tsuda was named president of the new company, which will be named NEC Display Solutions.
The move is designed to give NEC more flexibility in a growth segment, company executives said.
"The rumors have been out there for a long time," said T.J. Trojan, president and COO of NEC Display Solutions of America. "The fact is that it finally is happening. We're really excited about it. We are both channel-focused organizations. We rely 100 percent on the channel to deliver our products."
Trojan said the impetus behind the move was simply to create operational efficiency and economies of scale for, among other things, sourcing components.
"For the channel, by combining our two organizations, we'll get some operational efficiencies, but we'll gain some resources and extra touch points," he said. "Our channel organization is basically going to double. We'll continue to support all of the channel activities both companies are supporting now."
The new organization will have about 250 employees, with most focused on sales, marketing and distribution as many other tasks are outsourced, according to Trojan, who said his position in the new company has yet to be determined.