Struggling Midisoft Appoints New CEO

Midisoft appointed Larry Foster its new chief executive officer, replacing founder Raymond Bily, who is leaving after a disappointing year marked by staggering losses, major management shake-ups and an expensive shareholders lawsuit.

Bily, a former Microsoft executive who founded the music software company in 1986, abruptly stepped down as Midisoft's chairman and chief executive but will stay on as a director, company officials said.

His move marks a complete overhaul of the company's management team begun earlier in the year.

"The company has been through a lot of difficult times recently," said Foster, who has been president and chief operating officer since September. "Now is the time for the company to focus on the future."

Foster will serve as Midisoft's acting chairman until his formal election to the post.

The management shake-up comes less than a week after the struggling Issaquah company announced its largest loss ever, $12.1 million, or $2.60 a share, for the year ended Dec. 31.

During that year, the company's stock plunged from a 52-week high of $12.25 last March to its close yesterday of $2.875.

Along the way, the company replaced its president, two different chief financial officers, its controller, vice president for sales and marketing and now its chairman and CEO.

It also had to restate its financial results on two separate occasions, triggering the shareholders lawsuit that resulted in a

settlement costing the company $1.64 million in the fourth quarter.

Foster, who informed his employees of the moves late yesterday afternoon, said Midisoft will continue to refocus its efforts on its core audio technology.

The company currently has 46 employees, down from 73 at the start of the year.