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Descartes said Wednesday that CEO and chairman Arthur Mesher has retired from both roles. (Rick Koza/The Canadian Press)
Descartes said Wednesday that CEO and chairman Arthur Mesher has retired from both roles. (Rick Koza/The Canadian Press)

Descartes’ long-time CEO retires, company veteran takes on role Add to ...

Descartes Systems Group (TSX:DSG) says its long-time chief executive, Arthur Mesher, has retired as CEO and chairman of the board due to health and personal issues.

His successor as CEO, Edward Ryan, joined the logistics technology company in 2000 and has been its chief commercial officer since 2011.

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Scott Pagan, who also joined Descartes in 2000, becomes chief operating officer and president.

The company, which operates a global logistics system used by freight carriers to improve their operational efficiency, also issued a preliminary look at its third-quarter results on Wednesday.

Descartes said it expects revenue for its fiscal third quarter ended Oct. 31 will be in a range of US$38.5 million to US$38.8 million. That would be up from US$32.7 million a year earlier.

It’s also estimating income before income taxes being in the range of US$4.1 million to US$4.3 million, which includes recent restructuring and acquisition costs. Its adjusted EBITDA is estimated in the range of US$11.3 million to US$11.4 million.

In the comparable period last year, Descartes reported US$9.9 million of adjusted EBITDA and $3.1 million of net income, including taxes and other items excluded from the adjusted figure.

Analysts have estimated Descartes’ revenue in the third quarter at US$38.43 million, pre-tax profit at US$4.42 million and EBITDA at $11.07 million, according to data compiled by Thomson Reuters.

Descartes will issue its full report on the third quarter on Dec. 4.

Mesher joined Descartes in 1998 as executive vice-president for strategic development, and had been CEO of the Waterloo-based company since 2004.

“It has been extremely rewarding to serve as CEO of Descartes during the formation of the company’s strategy,” Mesher said in a statement issued by the company.

“As I step away from Descartes to focus on my health issues and personal life, I have great confidence in the future of the company as Ed and Scott continue to lead the execution of the strategy we created together over many years.”

07:37ET 27-11-13

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