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
Ken@theSpyGlassGroup.com
Telephone: (260) 215-7272
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SOURCE Ken Peterman