EDGEWOOD, N.Y., Oct. 24, 2011 /PRNewswire/ -- Tii Network
Technologies, Inc. (Nasdaq: TIII), a leader in designing,
manufacturing and marketing network products for the communications
industry, today announced that the Company's Board of Directors has
determined to replace Kenneth A.
Paladino as the Company's President and Chief Executive
Officer, and the Board will commence a search for a new President
and Chief Executive Officer. In the meantime, Brian J. Kelley, non-executive Chairman of the
Board, will serve as President and Chief Executive Officer.
Speaking on behalf of the Board of Directors, Mr. Kelley stated:
"We wish to thank Ken for his many contributions to the Company
while serving as President and Chief Executive Officer and before
that as Chief Financial Officer. Ken was instrumental in our
recent acquisitions of the Copper Products Division of Porta
Systems Corp. and of Frederick Fiber Optics. We wish Ken
success in his future endeavors."
Mr. Kelley continued: "Our appointment of a leadership
committee, consisting of key sales, engineering, manufacturing and
administrative members of management, to administer the Company
under my oversight on behalf of the Board, will ensure a seamless
transition for our customers, suppliers and employees."
Forward Looking Statement
Certain statements are "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995.
When used in this release, words such as "may," "should,"
"seek," "believe," "expect," "anticipate," "estimate," "project,"
"intend," "strategy" and similar expressions are intended to
identify forward looking statements regarding events, conditions
and financial trends that may affect our future plans, operations,
business strategies, operating results and financial position.
Forward-looking statements are subject to a number of known and
unknown risks and uncertainties that could cause our actual
results, performance or achievements to differ materially from
those described or implied in the forward-looking statements as a
result of several factors. We undertake no obligation to
update any forward-looking statement to reflect future events.
Among those factors are:
- exposure to increases in the cost of our products, including
increases in the cost of our petroleum-based plastic products and
precious and semi-precious metals;
- general economic and business conditions, especially as they
pertain to the telecommunications industry;
- potential changes in customers' spending and purchasing
policies and practices, which are effected by customers' internal
budgetary allotments that have been, and may continue to be,
impacted by the current economic climate;
- pressures from customers to reduce pricing without achieving a
commensurate reduction in costs;
- our ability to market and sell products to new markets beyond
our principal copper-based telephone operating company ("Telco")
market which has been declining over the last several years, due
principally to the impact of alternate technologies;
- our ability to timely develop products and adapt our products
to address technological changes, including changes in our
principal market;
- the ability of our contract manufacturer to obtain raw
materials and components used in manufacturing our products;
- competition in our principal market and new markets into which
we have been seeking to expand;
- our dependence on, and ability to retain, our "as-ordered"
general supply agreements with certain of our principal customers
and our ability to win new contracts;
- our dependence on third parties for certain product
development;
- our dependence on products and product components from our
China and Mexico contract manufacturer, including
on-time delivery that could be interrupted as a result of third
party labor disputes, political factors or shipping disruptions,
quality control and exposure to changes in costs, including wages,
and changes in the valuation of the Chinese Yuan and Mexican
Peso;
- weather and similar conditions, including the effect of
typhoons or hurricanes on our contract manufacturer's facilities in
China and Mexico, which can disrupt production;
- the effect of hurricanes in the
United States which can affect the demand for our products
and the effect of harsh winter conditions in the United States which can temporarily
disrupt the installation of certain of our products by Telcos;
- our ability to attract and retain technologically qualified
personnel; and
- the availability of financing on satisfactory terms.
Relating to our Recent Acquisitions:
- our ability to successfully complete the integration of our
recently acquired businesses, including their products, sales
forces and employees into our business;
- our ability to retain the general supply agreements of the
acquired Porta Copper Products Division with two significant
customers;
- our ability to penetrate the markets and customers of the
acquired products with our products, and to penetrate our existing
markets with the recently acquired products;
- our ability to execute our plans with our contract manufacturer
to improve gross margins of the products of the acquired Porta
Copper Products Division;
- the stability of the Pound Sterling and Mexican Peso relative
to the U.S. dollar exchange rate.
SOURCE Tii Network Technologies, Inc.