Arotech and CEO Steven Esses Announce Early Contract Termination
January 03 2017 - 07:30AM
Arotech Corporation (Nasdaq:ARTX) today announced
the early termination of its employment agreement with Steven
Esses, Arotech’s president and CEO and a member of the
Board. Mr. Esses left the Company and resigned as a director
of the Company and as an officer and director of all of the
Company’s subsidiaries effective December 31, 2016. The early
termination was by mutual agreement.
Under the terms of Arotech’s separation
agreement with Mr. Esses, Arotech is paying Mr. Esses a lump-sum
payment of approximately $2 million in lieu of the amounts owed to
Mr. Esses over the remaining life of his agreement, resulting in a
savings to Arotech of approximately $1.1 million. Taken together
with other recent initiatives, Arotech expects to have reduced its
annual operating expenses by over $4 million through Board
decisions taken in 2016.
“Over the last twelve months, the Company and
the Board have been aggressively engaged in identifying
opportunities to reduce costs while continuing to grow the
Company’s revenues and customer base,” said Arotech Chairman of the
Board Jon Kutler. “We are grateful to Steven for his many years of
service and contributions and we wish him the very best in the
future.”
“Dean Krutty has been named our acting CEO,”
continued Mr. Kutler. “Dean has been with Arotech and its FAAC
subsidiary since 1987, and has been serving as Arotech’s Executive
Vice President for the past two years, after ten successful years
as FAAC’s president.”
About Arotech Corporation
Arotech Corporation is a leading provider of
quality defense and security products for the military, law
enforcement and homeland security markets, including multimedia
interactive simulators/trainers and advanced zinc-air and lithium
batteries and chargers. Arotech operates two major business
divisions: Training and Simulation, and Power Systems.
Arotech is incorporated in Delaware, with
corporate offices in Ann Arbor, Michigan, and research, development
and production subsidiaries in Michigan, South Carolina, and
Israel. For more information on Arotech, please visit Arotech’s
website at www.arotech.com.
Except for the historical information herein,
the matters discussed in this news release include forward-looking
statements, as defined in the Private Securities Litigation Reform
Act of 1995. Forward-looking statements reflect management’s
current knowledge, assumptions, judgment and expectations regarding
future performance or events. Although management believes that the
expectations reflected in such statements are reasonable, readers
are cautioned not to place undue reliance on these forward-looking
statements, as they are subject to various risks and uncertainties
that may cause actual results to vary materially. These risks and
uncertainties include, but are not limited to, risks relating to:
product and technology development; the uncertainty of the market
for Arotech’s products; changing economic conditions; delay,
cancellation or non-renewal, in whole or in part, of contracts or
of purchase orders (including as a result of budgetary cuts
resulting from automatic sequestration under the Budget Control Act
of 2011); and other risk factors detailed in Arotech’s most recent
Annual Report on Form 10-K for the fiscal year ended December 31,
2015 and other filings with the Securities and Exchange Commission.
Arotech assumes no obligation to update the information in this
release. Reference to the Company’s website above does not
constitute incorporation of any of the information thereon into
this press release.
Arotech Investor Relations Contacts:
Scott Schmidt
Arotech Corporation
(415) 596-7061
Scott.Schmidt@arotechusa.com
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