PR Newswire
WASHINGTON, Oct. 8, 2024
Peterman Becomes the Third Former CEO of Comtech Calling for a Complete Board Overhaul to Restore Stockholder Value
WASHINGTON, Oct. 8, 2024 /PRNewswire/ -- Ken Peterman, former CEO of Comtech Telecommunications Corp. (NASDAQ: CMTL) ("Comtech" or the "Company") and Chairman of the Board from July 2022 through March 2024, has publicly declared his personal endorsement for the full slate of director nominees proposed by Michael Porcelain for the Company's upcoming 2024 Annual Meeting of Stockholders.
Mr. Peterman's endorsement comes after reading the open letter to stockholders that was issued by Fred Kornberg and Michael Porcelain on September 23, 2024. That letter detailed the urgent need for board and leadership changes necessary to restore Comtech's shareholder value. Mr. Peterman is the third former CEO of Comtech calling for a fully reconstituted Board of Directors.
Mr. Peterman, who remains a large stockholder of Comtech and who succeeded both Fred Kornberg and Mike Porcelain as CEO, was a driving force behind the One Comtech initiative—a strategic transformation designed to accelerate Comtech's long-term growth by unifying existing businesses into an integrated enterprise. The initiative aimed to cut operating costs, drive efficiencies, and create greater customer value through systems and services, rather than selling individual components.
Peterman stated: "The One Comtech strategy was built on the strong strategic and operational foundation Fred and Mike laid over decades. Their visionary leadership spurred Comtech's growth through acquisitions and operational excellence, allowing these entities to operate independently. When I became CEO, Comtech was positioned for growth, and its operations were solid. When I departed, the One Comtech strategy was well on its way to driving long-term shareholder value. Unfortunately, the current Board's collective actions have disrupted this progress, driving away talented executives, impacting customer relations, and impeding stockholder value."
Peterman continued, "I have serious concerns about many decisions made by the current Board. For instance, the June 2024 financing deal may be one of the worst in recent memory. With a blended interest rate of 14.0%, augmented by the issuance of warrants to lenders, the effective interest rate appears to exceed 18.0%, which is similar to a credit card. The Board's lack of critical domain expertise in Comtech's core satellite and NG 911 markets, has and will jeopardize Comtech's future. Comtech, its employees, and its stockholders deserve better."
Peterman, Kornberg, and Porcelain Praised by Current Board Members for Their Operational and Strategic Expertise and Commitment to Shareholder Value
Mr. Peterman stated, "In July 2022, when I assumed the role of Chairman of the Board, I was asked to help guide Comtech through its ongoing transformation. At that time, I publicly expressed my excitement about Comtech's immense potential. Additionally, I was eager to collaborate with Mr. Porcelain to build upon the strong foundation in place. Together, we had extensive operational and strategic experience and the Board fully recognized and valued the leadership of Mike and Fred:
Mike Porcelain — In October 2021, three current Board members—Judy Chambers, Larry Waldman, and Yacov Shamash—acknowledged Mike's instrumental role in executing Comtech's business strategies. They specifically noted his leadership in expanding the Next-Generation 911 and satellite earth station product lines and overseeing acquisitions such as Solacom Technologies Inc. and UHP Networks. The Board publicly stated that Mike was instrumental in developing and executing business strategies, driving substantial shareholder value across all facets of the Company, and that he was highly valued for his exceptional management skills, technical acumen, and understanding of the business. In January 2022, current Board member Wendi Carpenter and current Chairman of the Board Mark Quinlan joined Ms. Chambers, Mr. Waldman and Mr. Shamas in reaffirming that Mike Porcelain had positioned Comtech for a bright future.
Fred Kornberg— When Fred decided to retire, the Board acknowledged that his nearly five-decade tenure as CEO earned him respect for establishing Comtech as a market leader in satellite communications and 911 public safety products. The Board noted: "When Fred took on the role of CEO, Comtech had less than $20 million in revenue and approximately $1 million in net income. Today, Comtech is a global leader with over 2,000 employees around the world."
Mr. Peterman further added, "When I took on the role as Chairman of the Board, I told Fred that he was an amazing leader with a highly successful tenure that commanded my deepest respect and admiration. I was genuinely awed by how he navigated the many challenges posed by a multi-dimensional environment, continually changing market dynamics, competitive landscapes, and technology disruptions."
Shareholder Status
Mr. Peterman stated: "As a large stockholder, I hope my endorsement highlights the growing recognition that Comtech's future must be shaped by a Board of Directors with deep operational expertise and a proven track record of delivering long-term stockholder value. Both Fred and Mike have consistently demonstrated operational and strategic excellence, and with my endorsement, the case for electing Mr. Porcelain's full slate of nominees is even stronger."
Mr. Peterman concluded: "My endorsement is independent, is unrelated to my departure, and based solely on my personal assessment of what I believe is in the best interest of Comtech's stockholders, customers, and its talented employees."
About Ken Peterman
Ken Peterman is the Founder and CEO of the TheSpyGlass Group, a respected thought leader in emerging defense and aerospace market trends. Since 2012, The SpyGlass Group has worked with industry and government leaders to recognize and exploit market convergences and technology inflections to create advantage as well as with businesses to formulate effective strategies. Ken became a director of the Board of Directors of Comtech in May 2022, was elected to its Chairman in July 2022 and assumed the role of President and CEO in August 2022. Prior to that, Ken served as President of Viasat Government Systems from 2013 to 2021.
Contact:
Ken Peterman
[email protected]
Telephone: (260) 215-7272
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SOURCE Ken Peterman
