Appoints Kenneth H. Traub as President and
Chief Executive Officer, Effective Immediately
Commences Comprehensive Transformation to
Immediately Strengthen Company
Jan. 13, 2025-- Comtech Telecommunications Corp. (NASDAQ: CMTL)
(“Comtech” or the “Company”), a global communications technology
leader, today announced that its Board of Directors (the “Board”)
has named Ken Traub as President and Chief Executive Officer,
replacing John Ratigan effective immediately. Mr. Traub joined the
Comtech Board on October 31, 2024 and became Executive Chairman on
November 27, 2024.
Mr. Traub is leading a comprehensive transformation of Comtech.
Some highlights of this transformation include:
- Operational Discipline and Rightsizing. Comtech is
taking decisive action to improve processes, streamline product
lines, optimize staffing and sharpen its organizational focus.
These actions are expected to result in significant cost savings
and working capital efficiencies, particularly in the Company’s
Satellite & Space Communications (“S&S”) segment, and
position Comtech to generate sustainable positive cash flow.
- Support and Grow Successful Business Units. The
Company’s Terrestrial & Wireless Networks (“T&W”) segment
is poised for continued strong growth, driven by the need for
nontraditional methods to request emergency help from new devices
and the segment’s new initiatives in public safety technologies.
The growth of the Company’s carrier business will be supported by
its latest cloud-agnostic 5G passive and emergency location,
messaging and alerting services. In the S&S segment, Comtech is
strong in designing, manufacturing and supporting sophisticated
communications equipment for both defense and commercial users that
rely on the Company to provide mission-critical communications
infrastructure. Comtech will prudently invest in and support these
successful businesses and capitalize on opportunities to build and
monetize these valuable assets.
- Strategic Alternatives Process. The Comtech Board, under
Mr. Traub’s leadership, will conduct a comprehensive review of
strategic alternatives and explore a range of potential
transactions to enhance Comtech’s strategic focus and strengthen
the Company’s balance sheet. This process is a broadening of the
previously announced review of strategic alternatives for the
T&W segment and will include various alternatives for the
S&S segment.
- Strengthening the Capital Structure. Comtech had
available liquidity of approximately $30 million of cash and
equivalents as of both October 31, 2024 and January 10, 2025. The
Company is positioned to generate positive cash flow over the
coming months through implementation of the initiatives described
above and will consider opportunities to strengthen its capital
structure.
Mr. Traub commented, “While Comtech’s recent historical
performance has been unsatisfactory, the Company has great assets,
including its people, technologies, reputation, customers and
relationships. Since I joined the Company as Executive Chairman
about six weeks ago, I have learned a lot, which gives me
confidence that we can overcome the challenges and create new
opportunities to strengthen the business and drive value. We are
implementing a comprehensive set of initiatives to better position
Comtech for the future including improving operational discipline,
streamlining operations, supporting profitable growth initiatives,
undertaking a broad review of strategic alternatives and
strengthening the capital structure. I am honored to expand my role
as President and CEO today, and look forward to leading the Company
into a stronger and brighter future.”
“The Board is fully supportive of Ken's leadership and committed
to his strategy that will deliver immediate and necessary
improvements for Comtech,” said former Army Chief Information
Officer, Lieutenant General (Retired) Bruce T. Crawford, Lead
Independent Director of the Comtech Board.
There can be no assurance that the exploration of strategic
alternatives will result in a transaction or other strategic
changes or outcomes. There is no timeframe for the conclusion of
the process, and the Company does not intend to comment further
regarding this matter unless and until further disclosure is
determined to be appropriate or necessary.
First Quarter Fiscal 2025 Financial Results: Conference Call
and Webcast Information
In a separate press release issued today, Comtech announced its
financial results for the first quarter of fiscal 2025. That press
release can be found on the Investor Relations section of the
Company’s website at www.comtech.com/investors.
Comtech will host a conference call with investors and analysts
today at 8:30 am Eastern Time. Mr. Traub will lead the call, joined
by Michael Bondi, Chief Financial Officer; Daniel Gizinski,
President of the Satellite and Space Communications segment; and
Jeff Robertson, President of the Terrestrial & Wireless
Networks segment. A live webcast of the conference call will also
be accessible at www.comtech.com/investors. Alternatively,
investors can access the conference call by dialing (800) 579-2543
(domestic), or (785) 424-1789 (international) and using the
conference I.D. "Comtech." A replay will be available for seven
days by dialing (800) 839-9557 (domestic), or (402) 220-6089
(international).
About Kenneth H. Traub
Mr. Traub has served as a director on Comtech’s Board since
October 2024 and was named as Executive Chairman in November 2024.
He is a visionary and transformational corporate leader with a
successful track record of building sustainable shareholder value.
Mr. Traub has over 30 years of experience as a Chairman, CEO,
director and active investor with a demonstrated record of
accomplishment in driving strategic, financial, operational and
governance improvements. Mr. Traub is adept at managing business
challenges, executing turnarounds, optimizing capital allocation,
driving operational improvements, implementing M&A and other
strategic initiatives and capitalizing on strategic growth
opportunities. Mr. Traub received a BA from Emory College in 1983
and an MBA from Harvard Business School in 1988.
About Comtech
Comtech Telecommunications Corp. is a leading provider of
satellite and space communications technologies; terrestrial and
wireless network solutions; Next Generation 911 (NG911) and
emergency services; and cloud native capabilities to commercial and
government customers around the world. Through its culture of
innovation and employee empowerment, Comtech leverages its global
presence and decades of technology leadership and experience to
create some of the world’s most innovative solutions for
mission-critical communications. For more information, please visit
www.comtech.com.
Cautionary Note Regarding Forward-Looking Statements
Certain information in this press release contains, and oral
statements made by our representative from time to time may
contain, forward-looking statements. Forward-looking statements can
be identified by words such as: "anticipate," "believe,"
"continue," "could," "estimate," "expect," "future," "goal,"
"outlook," "intend," "likely," "may," "plan," "potential,"
"predict," "project," "seek," "should," "strategy," "target,"
"will," "would," and similar references to future periods.
Forward-looking statements include, among others, statements
regarding our expectations for our strategic alternatives process,
our expectations for further portfolio-shaping opportunities, our
expectations for other operational initiatives, future performance
and financial condition, the plans and objectives of our management
and our assumptions regarding such future performance, financial
condition, and plans and objectives that involve certain
significant known and unknown risks and uncertainties and other
factors not under our control which may cause our actual results,
future performance and financial condition to be materially
different from the results, performance or other expectations
implied by these forward-looking statements. Factors that could
cause actual results to differ materially from current expectations
are described in our filings with the Securities and Exchange
Commission. We urge you to consider all of the risks, uncertainties
and factors identified above or discussed in such reports carefully
in evaluating the forward-looking statements. The risks described
above are not the only risks that we face. We do not intend to
update or revise publicly any forward-looking statements, whether
because of new information, future events, or otherwise, except as
required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20250112212996/en/
Investor Relations Contact Maria Ceriello 631-962-7102
investors@comtech.com
Media Contact Jamie Clegg 480-532-2523
jamie.clegg@comtech.com
Grafico Azioni Comtech Telecommunications (NASDAQ:CMTL)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni Comtech Telecommunications (NASDAQ:CMTL)
Storico
Da Gen 2024 a Gen 2025
