Management Changes

Microsoft (Nasdaq: MSFT) was recently said to be mulling a reorganization of its company. The following is a list highlighted by Microsoft News about what the new structure might look like, including segment heads:

• Windows Engineering – Jon DeVaan
  
• Online Services – Qi Lu
  
• Hardware and Partner Operations – Michael Anguilo
  
• Microsoft Studios – Don Mattrick
  
• Business Platform – Tony Bates
  
• Microsoft Apps – Julie Larson-Green
  
• Developer Tools – Scott Guthrie
  
• Microsoft Research – Direct Report

Brocade Communications (Nasdaq: BRCD) confirmed in an email statement to Bloomberg that its vice president of Americas sales is leaving the company to pursue other opportunities. In the view of Wells Fargo analyst Jess Lubert, the departure is a negative development.

"We view Mr. Ellery's departure as a negative development for Brocade, as we believe he was well respected in the Ethernet sales organization and his resignation may lead to additional turnover in the business. We also view his departure as a sign that changes are taking place at Brocade, with the company recently hiring Jeff Lindholm as the new SVP of Worldwide sales, announcing plans to eliminate $100MM in cost from the business, and refocusing the Ethernet sales effort on high margin areas where the company believes it can win," said Lubert.

"While these changes may position Brocade to deliver improved growth and profitability over time, we see the potential for near-term disruptions (as illustrated by Mr. Ellery's departure), which could negatively impact results and make it difficult for the stock to work over the next several quarters," added the analyst.

Wells Fargo has a Market Perform rating on Brocade.

For an analyst ratings summary and ratings history on Brocade (NASDAQ: BRCD)click here. For more ratings news on Brocade click here.

Shares of Brocade closed at $5.78 yesterday, with a 52 week range of $4.44-$6.44.

This morning, HP (NYSE: HPQ) announced that Todd Bradley will step out of his role as executive vice president, Printing and Personal Systems (PPS), HP, to assume a new position at the company -- executive vice president, Strategic Growth Initiatives. Dion Weisler, currently senior vice president for HP PPS in Asia Pacific and Japan (APJ), will step in to Bradley's role as executive vice president, PPS, HP.

Analysts are viewing the news as a positive.

Global Equities Research's Trip Chowdhry said, "This is a very good move, Todd Bradley had made series of strategic mistakes, his departure should have happened long before."

Chowdhry said Bradley was behind the death of Palm WebOS, which at one point had a very good chance of being the 2nd player in mobile space. He also made bad decision to go with Windows 8 Mobile for Tablets then backtracked and went with Android Tablets - another losing strategy given competing Android Tablets from ACER, ASUS, Samsung and Lenovo.

"Seems like under Todd Bradley, HP PSG had no strategy ...just random thoughts and random tactics," the analyst said. "Under Todd Bradley...HP missed completely on the shifts within the Industry...He continued to run HP PSG as if it was 1990's, focusing wrongly on Supply Chain, while the Industry was going towards Asymmetric Pricing Models and Innovation."

HP investors should welcome today's change, although questions remain about the new group leader.

"We think, Investors should welcome the change of leadership in HP PSG, but we are not too sure if the new replacement is any good...HP Should bring back Jon Rubinstein to lead PSG. He created Apple iPod, created one of the best Mobile OS's WebOS and knows how to drive innovation."

He added, "HP PSG group needs Innovation throughput , less on Operational accumen...Meg can very well do that..."

John Wiley & Sons Inc. (NYSE: JW-A) reported Q4 EPS of $0.71, $0.09 worse than the analyst estimate of $0.80. Revenue for the quarter came in at $446 million versus the consensus estimate of $467.35 million.

As previously announced, Ellis Cousens, Wiley’s CFO and Chief Operations Officer, will retire as planned at the end of Fiscal Year 2014. Following a comprehensive external search, Wiley has named John Kritzmacher, former CFO of Lucent Technologies and Global Crossing, as Executive Vice President and Chief Financial Officer, effective July 1, 2013. John will be responsible for Wiley’s global finance function and activities, business development, M&A and investor relations. Ellis Cousens will retain responsibility for certain global operations and oversee the Company’s cost restructuring initiative until his retirement from the Company.

As previously announced at the end of the third quarter, Wiley recorded a fourth quarter restructuring charge of $24.5 million ($0.27 per share) related to its cost restructuring initiative, which is on track to yield $80 million in run rate net savings by the end of fiscal year 2014. The charge is primarily related to severance and other employee separation-related benefits; process reengineering consulting costs and U.S. defined benefit pension plan termination costs. As previously noted, the Company is targeting more than half of the cost savings achieved to improve financial performance, while the remainder will be reinvested in high growth digital business opportunities. The $24.5 million charge and other actions identified to date will yield approximately $38 million in ongoing savings towards the $80 million overall program objective when fully phased-in over the course of fiscal 2014. Finally, as a result of the restructuring strategies identified, the Company recorded impairment charges on technology and controlled circulation journal assets of $15.2 million ($0.19 per share).

Wiley expects to record an additional charge or charges during fiscal year 2014 as it implements successive phases of the program. Given progress to date, the Company expects that it will be in a position to begin implementation of the next phase of the restructuring initiative mid-fiscal year which will generate a charge for additional employee separation-related benefits of a similar size to that taken at year end fiscal 2013. The Company will endeavor to provide as much forward guidance on such charges and progress on the achievement of savings as feasible over the course of the fiscal year.

For earnings history and earnings-related data on John Wiley & Sons Inc. (JW-A) click here.

Duke Energy (NYSE: DUK) announced that the board of directors has unanimously elected Lynn Good as its next president and chief executive officer, succeeding Jim Rogers, who will continue to serve as chairman of the board until his retirement on Dec. 31, 2013. Good will also serve as a director on the Duke Energy board. She will assume her new role on July 1.

The Duke Energy board of directors will also name one of its independent directors chair-elect in the coming weeks. This individual will assume responsibilities as chairman of the board on Jan. 1, 2014, and will assist the new CEO and the board with a smooth transition in the coming months.

Good, 54, has served as Duke Energy's executive vice president and chief financial officer since July 2009. She joined Cinergy, a Duke Energy predecessor company, in 2003 following 20 years working in senior management roles and as a partner for Deloitte & Touche and Arthur Andersen.

The selection process was led by a nine-member committee of the board's independent directors. The committee and the board were assisted in their search by Russell Reynolds.