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Comtech Telecom CEO replaced by chairman; shares fall

Stanton Sloane, chief executive and president of Comtech

Stanton Sloane, chief executive and president of Comtech since January 2015, has left those posts, the company said Thursday, Sept. 24, 2016. Photo Credit: Barry University

Longtime Comtech Telecommunications Corp. executive Fred Kornberg has resumed his role as chief executive, replacing Stanton Sloane. the company said.

The move comes less than two years after Sloane replaced Kornberg, 80, who had served as chief executive for 38 years. Kornberg remains chairman of the board.

Shares of Comtech fell 4.7 percent to $12.52 in morning trading Friday.

Comtech said in the announcement late Thursday that Sloane, 66, would step down from the board of directors and exit the company. It also said that Michael Galletti, a former executive at Northrop Grumman and Harris Corp., has been appointed to the newly created role of chief operating officer.

Sloane was named chief executive in December 2014, weeks after the company announced it was abandoning an effort to find an acquirer or merger partner.

During his tenure, Sloane oversaw Comtech’s acquisition of TeleCommunication Systems Inc., based in Annapolis, Maryland. That deal closed earlier this year.

“With the acquisition of TeleCommunication Systems Inc. completed and its integration with Comtech well underway, I am excited about Comtech’s trajectory,” Kornberg said in a statement. “I thank Stan for his efforts during an important time of the Company’s development.”

The Melville company is scheduled to report its fourth-quarter and fiscal 2016 results after the market closes on Oct. 6.

In the third quarter, Comtech posted a 73 percent year-over-year increase in revenue with the integration of TeleCommunication Systems, but a net loss of $14.4 million compared with a profit of $5 million in the year-earlier period.

Comtech’s products include satellite Earth station modems and microwave amplifiers used in aircraft and satellite communications.

Separately, Comtech said Thursday it won a $14.4 million contract from a Defense Department agency to continue providing satellite bandwidth and support services to the U.S. Marine Corps.

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