This Antitheft Company Is Feeling Insecure

This should have been a banner year for Ronald G. Assaf. Nearly 30 years after he co-founded Sensormatic Electronics Corp., the maker of antitheft and security devices appeared to be hitting its stride. Revenues of the company, based in Deerfield Beach, Fla., have grown at a 40% annual clip over the past three years and were expected to hit an estimated $920 million for the year ended June 30. In January, it completed the acquisition of a major competitor's operations in Europe. And Sensormatic is gearing up for a high-profile role as a sponsor and the provider of electronic security systems for the 1996 Olympics in Atlanta.

Instead, Assaf finds himself defending the company's accounting practices and business prospects, shoring up damaged credibility, and countering contentions that Sensormatic's products cause problems with pacemakers. In March, he was jolted by the unexpected resignation, for personal reasons, of Michael E. Pardue, who served as chief operating officer, chief financial officer, and liaison with Wall Street. Assaf admits the company's controls and systems have been inadequate. On July 7, Sensormatic said earnings would be substantially below expectations and below last year's fourth quarter.