Monarch Activist questions Radyne's direction

By Lisa Kerner

Charlotte, N.C., Jan. 24 - Monarch Activist Partners LP expressed concern over Radyne Corp.'s strategic direction and a "growing gap between the value of the company as a standalone entity versus the value of the enterprise in a sale."

The investor's comments were included in a Jan. 24 letter to Radyne's board of directors and as part of a schedule 13D with the Securities and Exchange Commission.

Monarch, with less than a 5% stake in Radyne, urged the board to hire an investment banker immediately in order to explore strategic alternatives, including a possible sale of the company.

The investor would also like to see Radyne conduct a marketing test "in a publicly disclosed environment so all would-be suitors can express interest in the company."

"We believe the board does not have any sense as to what the company is actually worth and will never know without conducting such a process," Monarch's letter stated.

Monarch also cited the company's poor response to shareholder concerns and failure to grow the core business. Radyne's saving grace, according to Monarch, comes from its acquired Xicom business.

"We have listened to several earnings calls, engaged in discussions with Radyne senior management, heard the most recent Needham Growth stock conference presentation and are troubled by what we consider management's strategy to grow the company," the letter said.

Monarch also commented on the fact that management has not purchased any of the company's shares and the board has not authorized a "substantial" share repurchase program when "improvements are said to be imminent."

Radyne is a communications products company based in Phoenix.

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