There has been a partial change back to the old guard at SDL following the so-so Q3 IMS of last month (see SDL on a see-saw) and subsequent share price drop that has taken the price down to a two year low. CEO John Hunter has left “to pursue other business interests” and current chairman and former SDL CEO Mark Lancaster will act as CEO on an interim basis.
SDL really is a business of two halves – language services and technology (including the content management and acquired Alterian business). Language services represent the vast majority of SDL’s business; technology is small in proportion (c 29% by revenue) but viewed as a growth area. However, the in-line Q3 IMS referred to “suppressed” technology revenue. The two sides of the business should complement each other and act as a catalyst for further revenue growth but that does not appear to be happening, at least not at the rate shareholders want to see. The Alterian acquisition was fraught (see the HotViews archive here), and subsequent integration efforts will have been a distraction. The job facing Lancaster and/or the incoming CEO is uniting the business to release substantial latent growth potential.