A shift ahead at Ortega

Monday, March 1, 2004

SANTA CLARA, Calif. - Ortega InfoSystems has changed its approach in the security market, recently deciding to focus on the OEM market rather than aligning with systems integrators to use its video-based management system for access control.

The new direction resulted in the elimination of four executive management positions at Ortega, including Dennis Raefield, who came on board last year as president to help establish relationships with systems integrators. Other positions eliminated included chief financial officer, vice president of marketing and vice president of engineering.

Several months ago, the company also closed sales offices in New York and Chicago.

It was in fact Raefield who told fellow board of director members that the company should shift its focus. “The value of Ortega is that it adds video management to an access control system and trying to sell that as a standalone product was a difficult challenge,” said Raefield. “But while we had success in it, it wasn’t the volume we had expected.”

Raefield remains with the company as a member of the board of directors, but Eric Hsu, one of the founders of the company, has taken over as president and chief executive officer. By focusing on the OEM market, Hsu said the company’s board of directors expect to duplicate sales faster compared to the integration channel, which often requires a longer leeway.

The company also intends to focus on two of its OEM relationships – IDenticard and Goodwill, a Taiwanese DVR manufacturer.

Hsu said the decision was not due to a lack of finances, and that a significant portion of the $11.8 million the company raised in funding last year remains. The company also continues to occupy new building it moved into last year, which was meant to provide Ortega with room to grow.