Cadence Names CEO, Announces Share Repurchase Plan

Cadence Inc. has appointed Alan Connor as its new CEO. Connor has been serving as president since April 2011, and will succeed Peter Harris in April 2013 following a six-month transition period. Harris will continue as board chairman.

Prior to joining Cadence in 2011, Connor spent a long career in the medical device industry. His experience includes various executive management roles within large and medium-sized companies, such as MicroAire, MEDRAD Inc., Arthur Andersen LLP, and Westinghouse Electric Corporation. He also has experience building strong organizations and customer relationships while improving operating efficiencies. Connor earned an M.B.A. with concentrations in marketing and finance from the University of Pittsburgh’s Joseph M. Katz Graduate School of Business, and a bachelor of science degree in industrial engineering from Penn State University in University Park, Pa.

“We have a very special team of highly motivated employees who remain focused on creating new manufacturing technologies to enable new product innovation,” said Connor. “I look forward to working closely with our employees, Peter and the board through our next phase of growth.”

“We’re excited to have Alan lead our growing efforts for development and expansion in this market environment,” said Harris. “This promotion is the result of a two-year succession planning process. Alan’s personal efforts have been instrumental in our recent success and I look forward to his ongoing leadership as we pursue our vision.”

The company also announced plans to spend up to $4 million dollars to repurchase its own shares. Funds used to purchase shares will come from a combination of operating cash flow and existing debt facilities. Cadence spokesperson Ken Cleveland told Medical Design Now that the repurchase plan stems from a company belief in the value of its shares, and that company prospects are good. “Investing spare capital in the company makes sense right now,” Cleveland said.
 
Cadence’s revenue jumped 34 percent in the first nine months of 2012 and its income skyrocketed 72 percent. Earnings per share ended at $1.76 as of Sept. 30, a 52 percent increase compared with the first nine months of 2011. Earnings before interest, taxes, depreciation and amortization were up 46 percent compared with last year.

Cadence is a contract manufacturing company focused on medical technologies for minimally invasive devices headquartered in Staunton, Va.