ADDvantage Technologies: New CEO

Author's Avatar
Frank Voisin
Apr 05, 2012
Article's Main Image
One of my portfolio holdings, ADDvantage Technologies (AEY) issued a press release today stating that Ken Chymiak, President and CEO of the firm since 1999, is being replaced by an external candidate, David Humphrey. Humphrey brings significant finance experience, with both M&A and venture capital in his background. This might be a sign that he is there to help unlock shareholder value (which outgoing CEO and major shareholder Chymiak had expressed frustration about in past conference calls). Fear not, Humphrey is not solely an excel jockey; he has significant operational experience as youll see below. Overall, this appears to be quite a catch for small cap AEY.

Heres the press release (emphasis mine):

ADDvantage Technologies Group, Inc. today announced that its Board of Directors has appointed David Humphrey as the Companys new President and Chief Executive Officer. As part of an executive transition plan, Ken Chymiak, who had been President and Chief Executive Officer of the Company since September 1999, has been appointed as Chairman of ADDvantages Board of Directors and will continue to focus on the Companys ongoing business strategy in that role. Also, David Chymiak, who had been Chairman since September 1999, will remain on the Companys Board of Directors and has been appointed as Chief Technology Officer of ADDvantage. In this role, David Chymiak will focus on supporting the product lines the Company currently offers and expanding its product offerings in the cable television industry as well as other markets. David Chymiak will also continue his current responsibilities of leading Tulsat, a wholly- owned subsidiary of the Company.

Mr. Humphrey, 56, joins ADDvantage with a broad range of experience as a senior manager overseeing operations, finance and mergers and acquisitions. He has spent the last 34 years in various industries, including 13 years in the oil and gas industry while working with Koch Industries, Inc., where he held several senior executive level positions at various Koch subsidiaries. During his time with Koch Industries, Mr. Humphrey successfully implemented several management, and sales and marketing programs that increased sales and profitability for the respective subsidiaries. He also completed several multi-million dollar acquisitions of certain assets for Kochs subsidiaries, including a $100 million pipeline and storage system and a $90 million production plant.

Most recently, Mr. Humphrey was the Chief Executive Officer of TokenEx, an early-stage technology company focused on cyber security software, where he oversaw operations production, finance, purchasing, sales, product development and fund-raising. Prior to joining TokenEx, Mr. Humphrey was the Chief Operating Officer of Oklahoma Equity Partners (OEP), a venture capital fund, where he was responsible for all operations of the venture fund. Mr. Humphrey was also a principal of Davis, Tuttle Venture Partners, where he was responsible for all operating aspects of a $45 million venture capital fund. Mr. Humphrey graduated with a B.S. in chemical engineering from the University of Wisconsin and earned an MBA from Texas A&M.

Commenting on Mr. Humphreys appointment, Ken Chymiak stated, We are excited to bring David on as our new Chief Executive Officer and believe that hell bring a fresh perspective and new ideas to our business that will help us identify opportunities for future growth. Davids diverse operational and financial background, as well as experience in mergers and acquisitions will also play an important role in our ongoing efforts to refine ADDvantages corporate structure. This effort will go hand-in-hand with the efforts of our CFO, Scott Francis, and subsidiary management team to achieve greater continuity across our seven subsidiaries and to create new long-term sustainable growth in the CATV equipment industry as well as other markets.

I am excited to join the management team of ADDvantage Technologies and look forward to applying my business experience towards creating new opportunities for the Companys growth, stated Mr. Humphrey. As a leader in the market for both new and refurbished cable television equipment, ADDvantage has a wealth of market knowledge and customer relationships that can be used to cultivate new opportunities for the business. In addition, ADDvantage has a strong financial footing from which to operate and implement changes to the Companys operations. This offers us significant flexibility when it comes to creating a strategy that offers real long-term growth opportunities.
What do you think of this shake up?

Author Disclosure: Long AEY

  • CEO Buys, CFO Buys: Stocks that are bought by their CEO/CFOs.
  • Insider Cluster Buys: Stocks that multiple company officers and directors have bought.
  • Double Buys:: Companies that both Gurus and Insiders are buying
  • Triple Buys: Companies that both Gurus and Insiders are buying, and Company is buying back.

» Take a Free Trial of Premium Membership

3 / 5 (6 votes)