Comtech Comments on ISS Report

MELVILLE, N.Y. –
December 7, 2021– Comtech Telecommunications Corp. (NASDAQ: CMTL), a leading global provider of next-generation 911 emergency systems and secure wireless communications technologies, today issued a statement in response to a report by Institutional Shareholder Services (“ISS”) regarding the election of directors to Comtech’s Board of Directors at the Company’s upcoming 2021 Annual Meeting of Stockholders:

ISS correctly recognizes the transformative actions Comtech’s Board and management have taken to strengthen corporate governance and strategically reposition the company to capitalize on secular growth opportunities. These actions include executing a multi-year Board refreshment process, completing a leadership succession plan, and developing an industry-leading portfolio of products and services in rapidly growing core markets. ISS also noted the strength of our incoming CEO’s knowledge of the industry and that the Board’s leadership change has put the company on a better trajectory poised to take advantage of sector tailwinds.

Where ISS misses the mark, however, is in its failure to attribute Comtech’s recent success to these critical actions, which Comtech’s current Board and management team have been implementing for the past five years. Over this period, Comtech has created clear value for shareholders, delivering five-year total shareholder returns of 126.7% – exceeding the S&P 600 (99.7%), the NASDAQ Telecommunications Index (87.5%), and the appropriate peer set (36.7%).¹ By contrast, Outerbridge’s only proven track record is trading its common stock and many short-term stock options in Comtech and Barnes & Noble Education at prices favorable to itself while creating volatility for long-term shareholders.

We believe ISS gravely underestimates the damage that would be done if Sidney Fuchs were to join the Comtech Board. ISS mistakenly dismisses Fuchs’ material conflict of interest as Chairman of Eutelsat America Corp. when several of Comtech’s largest customers have already voiced concerns about his potential appointment. While ISS suggests that Mr. Fuchs could recuse himself, we do not see how that could work when customer considerations are foundational to every strategic decision the Board makes, including investments in organic growth opportunities and M&A. In our view, to the extent Mr. Fuchs would have to recuse himself or would be conflicted from participating in committee or board meetings, it would likely be equivalent to his not serving on the Board at all.

A more comprehensive analysis of the candidates’ qualifications demonstrates that Mr. Fuchs lacks the skills and expertise to add incremental value for shareholders – and would indeed be value-destructive. We note that ISS chose not to support Outerbridge candidate Wendi Carpenter in part due to her lack of experience that is relevant to Comtech’s business.

Further, ISS fails to appreciate the importance of the $100 million strategic growth investment that Comtech secured from current shareholder White Hat Capital Partners, LP and Magnetar Capital LLC to accelerating our value creation strategy. ISS is incorrect about our borrowing capacity under our existing credit facility. Based on Comtech’s existing $200 million of debt, its $30 million of planned capital expenditures, its ongoing annual dividend program, its publicly announced fiscal 2022 guidance, and existing covenants, Comtech would not be able to make a request for a single dollar of incremental borrowing under the $250 million accordion feature. In light of this, we approached our key lending partners and they advised us to raise capital before seeking to obtain necessary additional borrowings.

This investment more than doubles our accessible capital to invest in a generational technology renewal cycle across core markets. It also offers us important financial flexibility and liquidity as we continue to navigate the impacts of COVID-19 and supply chain issues.

We urge shareholders to consider that electing any of Outerbridge’s nominees will introduce significant risk to the Company’s strategic direction. Outerbridge has nominated these candidates with no clear plan to enhance shareholder value but has made no secret of its self-serving objectives and has been willing to use blatant misinformation, seemingly for the purpose of bolstering its reputation as an activist and aiding its fundraising efforts. The underlying impact of voting for any of Outerbridge’s red-flag candidates is clear: a hedge fund with no experience in Comtech’s industry or understanding of our business will advocate for a near-term sale or announcement of a strategic alternatives process, tactics that would benefit Outerbridge’s trading strategy by allowing it to turn a quick profit on its near-term options holdings.

By comparison, both of Comtech’s nominees on the BLUE proxy card, Larry Waldman and Judy Chambers, have the experience, skills, and qualifications necessary to continue overseeing execution of the Company’s long-term strategic plan and creating shareholder value.

• Larry Waldman has been a critical independent voice in driving the Company’s successful transformation over the last six years. He has helped oversee the Company’s acquisition strategy (including building the NextGen 911 portfolio that Outerbridge asserts is the “crown jewel” of the company), Board refreshment, and leadership succession plan, among other value-enhancing initiatives undertaken over a number of years. Under his stewardship, the Company has generated total shareholder returns of over 120% over the last five years², and the Company is on significantly stronger footing with significant recurring revenues and a robust new business pipeline.

• Judy Chambers has already overseen significant corporate governance enhancements since joining the Board in August 2021 – including a plan for declassification, the completion of our leadership succession, and the appointment of two incoming directors with extensive industry experience. Her financial and M&A expertise, track record navigating infrastructure projects with public authorities, and demonstrated commitment to ESG will play an indispensable role in our value creation strategy moving forward.

Now is not the time to disrupt Comtech’s strong forward momentum and thoughtful value creation plan by supporting Outerbridge’s unqualified nominees and depriving our Board of critical skills and experience to achieve long-term growth.

Comtech reminds shareholders that their votes are extremely important, no matter how many or how few shares they own. Comtech strongly recommends that shareholders elect Comtech’s highly qualified director nominees, Judy Chambers and Larry Waldman, by voting the BLUE proxy card today.

컴텍 소개

는 전 세계 상업 및 정부 고객에게 차세대 911 응급 시스템과 보안 무선 통신 기술을 제공하는 선도적인 글로벌 기업입니다. 뉴욕주 멜빌에 본사를 두고 있으며 고객 성공을 위한 열정으로 첨단 보안 무선 솔루션을 설계, 생산 및 판매합니다. 자세한 정보는 www.comtechtel.com 에서 확인하세요.

미래 예측 진술

이 보도자료의 특정 정보에는 당사의 사업 궤적, 미래 수익 및 판매, 인수 전략, 경영 및 지배구조 변화, 성장 등 본질적으로 미래예측진술이며 특정 중대한 위험과 불확실성을 수반하는 진술이 포함되어 있습니다. 실제 결과는 이러한 미래예측 정보와 크게 다를 수 있습니다. 이러한 미래예측진술에 영향을 미칠 수 있는 위험과 불확실성은 다음과 같습니다: 최근 인수로 인해 예상되는 시너지 효과와 혜택이 완전히 실현되지 않거나 예상 기간 내에 실현되지 않을 가능성; 인수한 사업체가 당사와 성공적으로 통합되지 않을 위험; 최근 인수로 인해 비즈니스 및 운영 관계를 유지하거나 핵심 인력을 유지하기가 더 어려워질 수 있는 혼란 가능성; 회사가 정부 솔루션 부문에서 대형 상품 서비스 계약 입찰에서 벗어나 마진이 높은 틈새 제품 계약을 추구하는 방향으로의 전술적 전환을 실행하는 데 실패할 위험; 순매출 및 운영 실적에 상당한 변동을 일으킬 수 있는 신규 또는 기존 주문의 성격과 수령 시기 및 회사의 실적; 정부 계약의 시기 및 자금 조달; 장기 계약의 총 이익 조정, 해외 판매와 관련된 위험, 급격한 기술 변화, 진화하는 산업 표준, 신제품 발표 및 개선, 고객 요구 및 조달 전략의 변화, 일반적인 경제 및 정치 상황의 변화, 글로벌 시장에서의 유가 변화, 외화 환율의 변화; 회사의 법적 소송, 고객의 배상 청구 및 기타 유사한 문제와 관련된 위험, 신용 시설에 따른 회사의 의무와 관련된 위험, 회사의 대규모 계약과 관련된 위험, 코로나19 팬데믹 및 관련 공급망 중단과 관련된 위험, 기타 이 문서 및 회사가 증권거래위원회에 제출한 기타 서류에 기술된 기타 요인. 당사는 이러한 미래예측진술을 업데이트하거나 실제 결과 또는 기대치의 변경에 부합하도록 업데이트할 의무가 없으며 그럴 의도가 없습니다.

추가 정보 및 위치

Comtech has filed with the Securities and Exchange Commission (“SEC”) and mailed to the Company’s stockholders a definitive proxy statement, an accompanying BLUE proxy card and other relevant documents in connection with the Company’s Fiscal 2021 Annual Meeting of Stockholders (the “2021 Annual Meeting”). THE COMPANY’S STOCKHOLDERS ARE URGED TO READ THE PROXY STATEMENT, THE ACCOMPANYING BLUE PROXY CARD AND ANY OTHER DOCUMENTS TO BE FILED WITH THE SEC IN CONNECTION WITH THE COMPANY’S 2021 ANNUAL MEETING OR INCORPORATED BY REFERENCE IN THE PROXY STATEMENT BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE COMPANY’S 2021 ANNUAL MEETING AND THE PARTIES RELATED THERETO. The Company’s stockholders may obtain a free copy of documents filed with the SEC at the SEC’s website at https://www.sec.gov or the Company’s website at www.ComtechCreates.com.

모집 참여자

회사, 이사 및 일부 임원은 2021년 연례 회의에서 고려할 사항과 관련하여 주주로부터 위임장 권유에 "참여자"로 간주될 수 있으며, 기타 회사의 경영진 및 직원도 "참여자"로 간주될 수 있습니다. 미국 증권거래위원회(SEC) 규정에 따라 2021년 연례 주주총회와 관련하여 회사 주주 위임장 권유 참여자로 간주되는 자의 회사에 대한 주식 보유 또는 기타 직간접적 이해관계에 관한 정보는 2021년 연례 주주총회와 관련하여 제출된 회사의 최종 위임장 설명서 및 SEC에 제출된 기타 관련 문서에 명시되어 있습니다. 또한 회사의 임원 및 이사에 대한 정보는 2021년 7월 31일에 마감된 회계연도에 대한 10-K 양식의 회사 연례 보고서, 회사 및 해당 인물이 SEC에 제출한 기타 서류에서 확인할 수 있습니다.

PCMTL

¹ 출처: 2021년 10월 29일 기준 블룸버그 시장 데이터. 선정된 동종업체는 상업 및 정부 고객을 모두 보유한 글로벌 통신 솔루션 및 서비스 제공업체로, 시가총액이 100억 달러 미만인 기업으로 제한됩니다. 선정된 동종업체는 Elbit, Gilat, KVH Industries, ST Engineering, Viasat입니다. 총 주주 수익률은 배당금이 무위험 이자율로 재투자된다고 가정합니다.

² Source: Bloomberg market data as of October 29, 2021.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211207005463/en/

미디어 연락처

켁스트 씨엔씨

[email protected]

(212) 521-4800

투자자 연락처

컴텍 투자자 관계

[email protected]

(631) 962-7005