Enterasys Networks today announced it's moving its corporate headquarters from Rochester to Andover, Massachusetts. NHPR correspondent Brian McWilliams reports.
Enterasys, the largest of four Cabletron spinoffs, said the move from New Hampshire to Massachusetts is the start of a new era.
Drew Miale is a spokesman for the computer networking firm.
"Going forward we want to be identified with the legacy of the Massachusetts 128 area as being a hotbed for high-tech talent. And I think that association is going to help us in attracting new talent as we go forward." [:14]
Enterasys also cited Andover's proximity to Logan airport as a reason for the headquarters move.
New Hampshire high-tech business experts were quick to take issue with Enterasys's spin on the relocation.
Jeff Sohl is director of the center for venture research at UNH.
"I don't think it's real nice to make a knock like that on the state that has taken care of them. I mean, they have flourished quite well in New Hampshire. But I don't see it as any brain-drain on New Hampshire. There's still a lot of good things going on in New Hampshire, a lot of start ups and the investment community is still going." [:17]
Other New Hampshire business leaders were also quick to downplay the significance of the move.
Steve Wrenn is chairman of the e-coast roundtable, an initiative of the Portsmouth Chamber of Commerce.
Wrenn said the real reason for the Enterasys relocation is that the company's new CEO lives in Boston, as do other Enterasys executives.
And, according to Wrenn, it's common for corporations to relocate their headquarters for the convenience of top management.
"It's always very interesting to look at that, and to see when somebody takes over a company and moves their headquarters, to see where the CEO lives. And the opposite end of it is, when businesses normally start up, they start where the CEO is." [:15]
Indeed, Enterasys got its roots in New Hampshire from Cabletron, which was founded by current Governor Craig Benson.
Benson was on the board of Enterasys until taking office in January.
HE is still the largest shareholder in the firm.
ENTERASYS SAYS NH WILL LOSE ONLY 50 JOBS TO THE BAY STATE.
GOVERNOR BENSON DOWNPLAYED THAT LOSS.
HE NOTED THAT 350 Enterasys employees will remain AT the COMPANY’S Rochester engineering facility.
"The talent is in the design, in the engineering. And sales and marketing is in Andover, and the engineering is in Rochester. The heart and soul of any high-tech company is in the engineering and its engineering talent. And that is in New Hampshire."
[:14]
ON THURSDAY, Enterasys announced its financial results for 2002. The company said it lost 127 million dollars or 63 cents per share.
For NHPR NEWS , this is Brian McWilliams in Durham.
