The board of BISYS Group, Inc has accepted the resignation of Russell P Fradin, President, Chief Executive Officer and Director of the Company, with effect from 5 September 2006.
As a result, Robert J Casale, the Chairman of the Board, will serve as interim President and Chief Executive Officer while the Company seeks a permanent successor to Fradin, who is leaving the company to pursue another opportunity.
BISYS has formed a search committee to identify a new permanent President and Chief Executive Officer.
'Our Board of Directors and management continue to be sharply focused on addressing the challenges facing the Company, on doing what it takes to maintain stability within our business and on identifying and pursuing the path which best serves the interests of the Company's shareholders,' says Casale. 'We appreciate the contributions Russ has made during his tenure with the Company and I look forward to working with the management team to help the Company achieve its objectives and to continue to provide excellent service to our customers.'
Exploration of Strategic Alternatives
BISYS has also announced that it has recently initiated a process to explore strategic alternatives as part of its continued effort to maximize shareholder value. The company's board of directors is engaging Bear, Stearns & Co, Inc to advise it in connection with this process.
Update on Filings
As a result of Fradin's departure, and the resulting likelihood that the CEO certification required by the Sarbanes-Oxley Act of 2002 with respect to the Company's Form 10-K for fiscal 2006 will not be available on a timely basis, BISYS expects that its fiscal 2006 Form 10-K filing will be delayed beyond the normal filing date. The company is working to complete the filing process promptly.
BISYS has yet to complete its filing for Q3 fiscal 2006, but intends to provide additional information concerning the results for the full fiscal year ended June 30, 2006 following the publication of its Q3 fiscal 2006 Form 10-Q. Although the company does not currently intend to provide earnings guidance for fiscal year 2007 given the present circumstances, it expects that its fiscal year 2007 earnings per share results will be substantially below the current mean First Call consensus estimate for fiscal year 2007 earnings per share.
Background notes: Casale, 67, has served as a director of the BISYS since 1997 and as Chairman of the Board since 2004. He is the former Group President, Brokerage Information Services, of ADP, a position in which he served from 1988 to 1998. He also served as Managing Director, Mergers & Acquisitions/Corporate Finance of the High Technology Group of Kidder, Peabody & Co and more than 10 years in various executive positions with AT&T, including President-elect of AT&T's Special Markets Group, responsible for major joint ventures and partnerships. He is a member of the Board of Directors of EasyLink Services, a public company provider of services to facilitate the electronic exchange of certain information, and Northeast Securities, a privately held NYSE member firm.