Frederick Wang Out as Labs’ Top Officer : Son of Founder Resigns as Major Losses Hit Firm

LOWELL, Mass. — Frederick A. Wang, eldest son of Wang Laboratories Inc. founder, An Wang, resigned as president and chief executive officer in a move the company called painful but necessary in its recovery from major losses, the firm announced today.

The 11-member board of directors met at Wang headquarters Monday night in a special meeting, at which the younger Wang resigned.

The board then named as acting president and CEO, Harry H. S. Chou, who is currently a vice chairman and director of the international computer maker.

Frederick Wang, 38, will remain on the board and undertake special projects, his father said in a news release today.

A search committee for a new president was also formed.

The younger Wang could not be reached for comment but in a prepared statement, he said: “I believe this action is in the best interest of Wang Laboratories at this time. . . . Employees and customers will be best served by a speedy resolution to the company’s current situation.”

An Wang called his son’s resignation “in keeping with his constant devotion to doing what he felt was in the best interest of the company.”

$375-Million Quarterly Loss

Last week, the company announced a $375-million quarterly loss and suspended dividend payments. Its financial predicament put it in violation of a bank-lending agreement, the company noted.

Most of the loss resulted from a $237-million pretax charge to cover the cost of a restructuring that involved closing factories, cutting jobs in its worldwide work force of 28,000 people, and lowering the book value of outdated assets.

Wang stock has lost more than 80% of its value since early 1984, when it traded at more than $35 a share.

Wang closed Monday at $5.75 per share, up 12 1/2 cents.

Founded in 1951, the company made its reputation in the 1970s in office word processors. But sales began to slip with the increasing popularity of personal computers. Its minicomputer business fell behind as well, eclipsed by workstations.

In November, 1986, the elder Wang stepped down as president and was replaced by his son, a computer mathematician who had been with the company since 1972. An Wang on Monday returned to work part time after recovering from surgery for cancer of the esophagus.

Paul Henning, a Wang spokesman, said today of the action: “We wanted to give a consistent message that we are doing everything and anything possible, even taking steps that are painful. We have a lot of work to do.”