- Because, under the watch of the current Board, the Company has extended a continuous streak of unprofitability that began in 2004;
- Because, under the watch of the current Board, the Company’s net revenues have continued to decline, so that they were 42% less in 2011 than they were in 2004;
- Because, under the watch of the current Board, the Company’s stock price has continued to decline, so that is it over 60% lower than it was 10 years ago on a dividend adjusted basis;
- Because, under the watch of the current Board, the Company’s Tape Library business continues to lose money, dragging down the fortunes of the Company;
- Because the Board is touting an acquisition strategy when it has been incapable of profitably running its primary legacy business;
- Because pursuit of acquisitions as a cover for failed management of existing businesses is a tried and true prescription for financial disaster;
- Because the Board is refusing to make a distribution to its shareholders of excess cash, instead proposing to risk that cash on an unspecified and unproven program of acquisitions as part of a dangerous turnaround strategy;
- Because, with the departure of Mr. Gervais today, the current Board owns less than 1.3% of the outstanding shares;
- Because, at the recent annual meeting of shareholders, 3 of 5 directors failed to get a majority of the votes and a substantial number of shareholders withheld their votes from the other two;
- Because the current Board has just hired as the new CEO one of its own members with no experience as the CEO of a public company, and has guaranteed him payments in the first year of $455,000 not tied to performance; and
- Because for all of these reasons, we do not trust you when you say that at long last you are going to turn the fortunes of our Company around .
BKF Capital Issues Open Letter To Qualstar Board — “There You Go Again” Distorting The Facts And Distracting Shareholders From The Issues
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