CFO of the Year Awards - Public Companies
Company co-founder steered clear of layoffs
Victor Sellier, Argon ST

by Robert Powell
Virginia Business
July 2007

Going from years of double-digit growth to a sudden drop in revenue is a challenge for any CFO. That was the situation that Victor Sellier faced last year at Argon ST.

For years, the Fairfax-based company had repeatedly been recognized as one of the fastest-growing companies in the Washington area. Argon ST develops communications, intelligence, surveillance and reconnaissance systems for defense, intelligence and homeland security agencies. Last year, however, rev­enue dropped to $258.8 million from $271.8 million the year before because of the unexpected termination of a key program.

The situation presented Sellier with a new problem. As one of the company’s founders, he was used to dealing with headaches caused by a 25 percent annual growth rate in its first five years and an aggressive merger and acquisition campaign that had involved six other companies in only three years. Sellier, in fact, had shepherded the original firm, Argon Engineering, through its 2004 merger with SenSyTech to create Argon ST, a publicly traded company.

Reducing staff to accommodate a drop in revenue was not part of Argon’s pattern, and Sellier wanted to keep it that way. He transferred employees to other projects and looked for new work. In the end, the strategy worked.

Revenue for the first six months of the 2007 fiscal year was up $8.6 million from the same period last year. The company has gained new contracts worth more than $100 million since February.

Despite the demands on his time, Sellier remains accessible to the company’s employees. He set up a series of “brown-bag” training sessions at lunchtime that are open to all employees. Topics range from Business 101 to indirect charging.

“Vic is respected and admired by all who associate with him, and I am proud to work with him every day,” says Kerry Rowe, vice president and chief operating officer of Argon ST.