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Intergraph Merges Divisions

Information technology service provider Intergraph announced today it is cutting its four-division structure down to two.

The Huntsville, Ala.-based firm said it would maintain its core Process, Power & Marine (PP&M) division and create the Security, Government & Infrastructure (SG&I) division to handle operations previously addressed by the company's Intergraph Mapping and Geospatial Solutions, Intergraph Solutions Group and Intergraph Public Safety groups.

The SG&I division will be comprised of five industry-focused business units, including Public Safety and Local Government, Federal Solutions, Military and Intelligence, Utilities & Communications, and Transportation and Commercial Photogrammetry.

The division will rely heavily on Intergraph's Spatial Information Management (SIM) software, which is used for a wide range of functions, including plant design, ship construction, public safety dispatch, aerial photography and geospatial mapping and analysis.

In addition, Intergraph said it will consolidate certain functions around the world and across divisions, such as human resources, marketing, information technology, and finance and accounting.

"Streamlining our business into two divisions is part of our effort to leverage more effectively our technology and to capitalize on the cross-selling opportunities that exist between our operations," Halsey Wise, Intergraph president and CEO, said in a statement.

The reorganization also comes with changes to Intergraph's senior management team.

Reid French, formerly executive vice president of strategic planning and corporate development, has been named COO of the company. Reporting to French, is Gerhard Sallinger, president of Intergraph's PP&M division and Preetha Pulusani, formerly president of Intergraph Mapping and Geospatial Solutions.

Pulusani was also appointed president of Intergraph's newly formed SG&I division. Ben Eazzetta, formerly president of Intergraph Public Safety, will report to Pulusani and has been appointed to the position of COO for Intergraph's SG&I division.

In a separate announcement today, Intergraph reported revenue of $136.5 million for the first quarter of 2005, an increase of 3.2 percent from a year ago. Operating income for the quarter was $5.9 million, or 4.3 percent of revenue.

Part of the income came from the settlement of its outstanding lawsuits with HP and other computer makers.



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