EMS Technologies Replaces CEO

ATLANTA (AP) — EMS Technologies Inc. is replacing CEO Paul Domorski, saying it needs a leader with a stronger engineering background.

The company said Neilson Mackay, who has served as chief operating officer for the past year, will take over.

EMS, which provides wireless communications equipment, has been struggling. Its stock has lost nearly a quarter of its value since it reported third-quarter earnings last week that fell short of Wall Street forecasts.

Excluding unusual items, EMS said it earned $5.8 million, or 38 cents per share, on sales of $85.7 million. Analysts polled by Thomson Reuters expected 41 cents on $101.7 million.

Chris Quilty, of Raymond James, called the company's third quarter a "train wreck" in a note to investors. The results, he said, reflected weak demand, delayed orders "and plain dumb luck."

Still, Quilty added, "We do not see anything materially wrong with EMS' business beyond weak end-market demand."

In an interview, EMS Chairman John Mowell said Domorski's departure is not related to the company's third-quarter performance.