LANCASTER, Pa., July 22 /PRNewswire-FirstCall/ -- The Board of Directors for Herley Industries, Inc. (Nasdaq: HRLY) today announced sweeping changes to its top management leadership.
-- Myron Levy Replaced as Chairman and CEO
-- David Lieberman named Chairman of The Board
-- Richard Poirier Named Chief Executive Officer and President
-- Adm. Edward Walker (Ret.) to continue as Vice Chairman of the Board
-- Yonah Adelman Appointed Senior Vice President
-- John McClay Selected as General Manager for Herley New England
-- Substantial cost reductions to be achieved by eliminating separate
corporate office and reduced executive compensation
-- Increased Revenue and Profitability to be primary objectives
Effective immediately, Myron Levy has been replaced as the Company's Chief Executive Officer and Chairman of the Board. David Lieberman has been named to serve as the Company's Chairman of the Board. Mr. Lieberman, a senior partner in the New York law firm of Beckman, Lieberman & Barandes, LLP, previously served as a member of the Herley Board of Directors for many years and has provided corporate and securities law counseling for in excess of 25 years to Herley. He has also represented a number of other defense contractors over the years.
Mr. Lieberman commented, "Myron Levy has served the company exceptionally well since he first came to Herley in 1988, and he deserves our respect and appreciation for guiding the company through some very good business years, as well as the recent difficult times. Through his efforts, we believe Herley is well positioned for future growth. With the Company now back on track, the Board of Directors has determined that it is time for a new management team, drawn from key personnel throughout the company with proven records of success, to move the Company forward. Herley has a strong backlog, good leadership at its operations, and an excellent employee base. We believe that today's changes will add a new vitality and focus for the future growth of the Company. By installing a vibrant and experienced management team to run Herley, the Board believes that we are following a prudent, risk averse strategy which is in the best interests of our stockholders.
Mr. Lieberman stated, "Richard F. Poirier will replace Myron Levy as Herley's Chief Executive Officer. He also has been appointed President. Rich has been a Corporate Vice President and General Manager of Herley New England, in Woburn, Massachusetts since August 2003 and has been with Herley since 1992 when Herley acquired Micro Dynamics Inc. Rich joined Micro Dynamics upon his graduation in 1987, and in those 22 years, has been a guiding force in helping to lead Woburn to become Herley's fastest growing division, second only to Lancaster in size domestically. Rich holds a Bachelor of Science Degree in Electrical Engineering from Marquette University.
Mr. Lieberman continued, "Rich has successfully grown Herley New England into an approximately $30 million per year business, quadrupling in size in the last 10 years, while building strong business relationships with major prime contractors and international customers on critical defense programs. His technical knowledge, experience and history with the Company make him uniquely qualified to assume this leadership role. We are confident that he will meet the challenges of this new position. He will be receiving the full support of the Board and his fellow managers within the Company.
John McClay has been promoted to the position of General Manager at the Herley New England operation to succeed Rich Poirier. Mr. McClay has been Vice President of Business Development at Herley New England and has worked closely with Rich and Herley management since he joined Herley New England in 2000. John previously held positions as President of Professional Marketing Associates and as Division Manager at M/A-Com. He attended St. Joseph's College after serving with the United States Marine Corp in Vietnam.
Mr. Lieberman continued, "Herley has a core of experienced, high-level executives who have been instrumental in the acquisition of new technologies to broaden Herley's reach as a full service microwave technology provider to our customer base. Dr. Rozalie Schachter heads up this group. I intend to place a high priority on the potential acquisition of new companies and new technologies going forward, and I will work closely with Dr. Schachter in this regard. Herley grew rapidly from 2000 to 2005, largely through acquisition; and with our strong balance sheet and projected cash flow, the Board will be seeking to resume that growth."
In other actions, the Board of Directors promoted Yonah Adelman, General Manager of General Microwave Israel and GMIC Eyal to the position of Senior Vice President. Mr. Adelman joined Herley in 1999 with the acquisition of General Microwave Corp. His leadership has been instrumental to Herley's success, especially in the international marketplace. With the recent Eyal acquisition, Herley's Israeli operations are expected to generate revenues in excess of $40 million in the next fiscal year. When Herley acquired GMIC in 1999, annual revenues were approximately $6 million.
The Company is also implementing certain actions which should significantly reduce its general and administrative expenses. The position of Chief Operating Officer, previously held by Jeffrey L. Markel, has been eliminated and he will be leaving the Company; the Company's separate executive offices are being consolidated with the Lancaster operating facility and the executive compensation to key executives has been reduced in comparison to historical compensation. David Lieberman and Richard Poirier will be receiving annual compensation of $250,000 and $400,000, respectively. Mr. Lieberman has been granted 100,000 shares of restricted common stock, which vest in 2014, and Richard Poirier has been granted 50,000 stock options, which vest over a three-year period. Further, any incentive bonuses to the Company's executives will be discretionary and based on specific performance metrics such as revenue, profit margins and cash flow.
As previously announced, Herley Industries, Inc. is hosting an investor's conference at 4:30 P.M. on July 22 in New York. A simultaneous webcast of the event is available over the Internet through this URL: http://www.videonewswire.com/event.asp?id=60271 .
Herley Industries, Inc. is a leader in the design, development and manufacture of microwave technology solutions for the defense, aerospace and medical industries worldwide. Based in Lancaster, PA, Herley has seven manufacturing locations and approximately 1000 employees. Additional information about the company can be found on the Internet at www.herley.com.
For information at Herley contact:
Tel: (717) 735-8117
Safe Harbor Statement - Except for the historical information contained herein, this release may contain forward-looking statements. Such statements are inherently subject to risks and uncertainties. Forward-looking statements involve various important assumptions, risks, uncertainties and other factors which could cause our actual results to differ materially from those expressed in such forward-looking statements. Forward-looking statements in this discussion can be identified by words such as "anticipate," "believe," "could," "estimate," "expect," "plan," "intend," "may," "should" or the negative of these terms or similar expressions. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, performance or achievement. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors including but not limited to, competitive factors and pricing pressures, changes in legal and regulatory requirements, cancellation or deferral of customer orders, technological change or difficulties, difficulties in the timely development of new products, difficulties in manufacturing, commercialization and trade difficulties and current economic conditions, including the potential for significant changes in US defense spending under the new Administration which could affect future funding of programs and allocations within the budget to various programs as well as the factors set forth in this report and in our public filings with the Securities and Exchange Commission.
SOURCE Herley Industries, Inc.