AVP changes reflect E-System growth needs

E-Systems exerted stronger control over picture archiving andcommunication systems firm Advanced Video Products last week withthe replacement of AVP founder Thomas J. Goliash as presidentand CEO. Goliash will remain with E-Systems, focusing on strategicgrowth issues as vice president of development for E-Systems MedicalElectronics (E-Med). E-Med is the E-Systems subsidiary createdto hold AVP and future businesses developed or acquired in themedical field.

Linwood Givens, former director of the image processing groupat E-Systems, replaced Goliash as AVP president. Image processingis one of E-Systems' defense-related technologies being transferredover to E-Med for potential medical use.

PACS entrepreneur Goliash sold his Littleton, MA, company tothe $2 billion Dallas conglomerate last year (SCAN 11/4/92). Thesize and financial stability of AVP's new parent have helped AVPovercome customer uneasiness about company viability and long-termproduct support issues, Goliash told SCAN.

"It (the acquisition) has given us more respect in the(PACS) market. When you sell systems that cost over $500,000,customers want to know the company is financially stable. As asmall company, that was hard for us to prove when we were up againstcompanies like Kodak," Goliash said.

As an independent company, AVP did not have the luxury to planmuch beyond a two-year time frame, he said. Now, the company hasthe resources to improve long-range planning.

AVP is the only unit in E-Med, and the parent company is anxiousto see faster growth in its medical business. Growth is likelyto take place at first in medical imaging, particularly in areascomplementary to AVP's business and technical expertise, Goliashsaid. E-Systems will study ways to grow AVP internally and addnew companies to its medical business.

"You can't be a $10 million or $15 million company ina $2 billion organization. We have to make E-Med grow," hesaid.

While capital-intensive scanner sales have been sluggish oflate, hospital and clinic customers seem willing to invest insmaller sub-PAC systems, such as ICU/CCU connections, which costroughly $300,000, he said.

Customers are also increasingly anxious to make better useof their current imaging systems, Goliash said. These efficiencyneeds have helped boost teleradiology sales for MRI and CT connectionsbetween hospitals and clinics.