STAMFORD, Conn., Jan. 11, 2012 /PRNewswire/ -- Peerless Systems Corporation (Nasdaq: PRLS) is pleased to announce that another leading independent proxy advisory firm, Glass Lewis & Co., agreed with Peerless that stockholders should "send a clear message that the current Board has repeatedly FAILED to deliver on its long-stated view that ModusLink has been appropriately positioned for long-term growth in shareholder value." Glass Lewis recommends that stockholders of ModusLink Global Solutions, Inc. (Nasdaq: MLNK) vote using the Peerless GOLD proxy card.
In the report, Glass Lewis concluded that "Incumbent management and the board have overseen a period of decisive operational and share price underperformance, taken substantial impairments against all of ModusLink's recent acquisitions and, perhaps most concerning, appear unwilling to undertake meaningful board-level change in the absence of significant public pressure from existing shareholders."
Glass Lewis recommends stockholders vote the GOLD proxy cardOther statements made by Glass Lewis are as follows:
- "We find a significant portion of the arguments put forth by Peerless, particularly those with respect to the Company's share price and operating performance, appear to have merit."
- "There appears to be suitably fertile ground for criticism of the board's efforts to improve ModusLink's operating performance."
- "We believe [Peerless] has fairly identified material quantitative concerns with respect to the efforts of the incumbent board and management."
- "Moving toward capital allocation decisions, it appears Peerless has again correctly noted a less than inspiring trend of sharp goodwill write downs associated with each of the Company's last three acquisitions."
- "Though we recognize the potential benefits of the tax benefits preservation pill… we also note the timing of its adoption, in the midst of escalating rhetoric with [Peerless], raises clear questions about management's peripheral intentions."
- "We note certain incumbent board members are responsible for executive compensation decisions that have left ModusLink wallowing in mediocrity relative to its peers. More specifically… the Company's compensation plans earned ModusLink 'F' grades for fiscal years 2010 and 2011."
- "It appears to us that members of [the compensation] committee have not effectively served shareholders."