C-Com Satellite Systems Inc V.CMI

I think a management changes needs to be considered

[FormerHedgie]

While the year end results were not great, they weren't terrible.  However, the continued delay in the successful design / testing / launch / production and sale of the ESA / Phased Array Antenna is becoming increasingly concerning.  

The company itself raised the warning bells in the press release this morning saying that the "legacy" / non-ESA / phased array antenna market is on the verge of what seems like a potentially significant decline as the modern LEO constellations begin to errode the traditional MEO / GEO satellite markets.

For me, there are only 2 paths forward.  The first, the sale of the company to an entity who recognizes and will pay for the value of the R&D and product development to date of the ESA / Phased Array Antenna and the associated integrated circuts to support it.  The partner needs to have the capability, resources and relationship to bring the ESA quickly and successfully to market and to ramp up sales of CMI's products.  

The second path is to replace the senior leadership of CMI with individuals who have a credible record of bringing similar products to market and successfully launching them to the commercial marketplace.

I applaud Mr Klein on his long and successful history of running CMI profitabilty for many years and for recognizing the opportunity of the ESA / Phase Array antenna market, for striking a r&d realtionship with a credible university.  However, in a highly competitive world, significant opportunities like this don't last forever.

While Mr Klein has done well to this point. He has also run a public company like it was still his own private comnpany.  He has taken millions of dollars in dividends from the company, paid himself very hansomely for such a small company and paid himself for the use of a building that he owns with shareholder money etc... 

We are at a critical point for the company, time is of the essence.  Either a strategic transaction or a major management shake up must occur imminently.

I will not selling my shares because I think there is still tremendous value that has yet to be realized from the launch and sale of the ESA / Phase array antenna.  however, the time is now for shareholders get active and vocal.  If we don't our shares future appreciation with never be realized.