MOUNTAIN VIEW, Calif., June 6, 2013 /PRNewswire/ -- Richard A. Karp, one of Envivio, Inc's. (NASDAQ-GS: ENVI) largest outside individual shareholders owning approximately 3.8% of the Company's shares outstanding, today announced he has submitted himself by letter dated April 19, 2013 as a nominee for election to the Board of Directors at the Company's upcoming annual meeting of shareholders on July 17, 2013.
Mr. Karp believes his deep experience managing successful technology companies can be tremendously helpful at a time when these resources are needed most in Envivio's boardroom.
Commenting on the decision to submit himself as a nominee for election to the Board, Mr. Karp said, "I have purchased over one million shares of Envivio with my own personal capital because I know the industry well and I believe the Company's technology can eventually dominate the market. However, the business-as-usual attitude and frivolous spending practices cannot continue if Envivio is to realize the successful commercialization of its products over the next few years."
During the past year Envivio's stock has declined by more than 75%, losing over $160 million in value for shareholders. Collectively, four current board members control approximately 40% of the Company's shares, equating to a loss of more than $60 million for them and the investment funds that they manage.Given the high concentration of ownership amongst certain Board members, Karp added, "While I am under no delusion that I will win a proxy contest for Board representation without the support of several insiders, given the staggering loss of value shareholders have endured over this past year, it is simply not conceivable that the current Board is content with the status quo. I encourage them and ALL shareholders to join me in demanding that a new sense of urgency is embraced before the damage to the business is beyond repair."