Electro-Sensors Adds to Management Team and Board of Directors, and Announces
Temporary Suspension of Quarterly Dividend
Appoints David L. Klenk as CEO, Adds Scott A. Gabbard to Board of Directors,
Temporarily suspends Quarterly Dividend
MINNETONKA, Minn., July 23, 2013
MINNETONKA, Minn., July 23, 2013 /PRNewswire/ --Electro-Sensors, Inc.
(NASDAQ: ELSE), a leading global provider of machine monitoring sensors and
hazard monitoring systems, today announced the appointment of David L. Klenk
as CEO and CFO of the company. Mr. Klenk recently joined the Electro-Sensors
board of directors and now replaces Bradley D. Slye in these roles. "I'm very
eager to join the great team at Electro-Sensors at this exciting time in their
history. Brad and the team have built a solid company that is known for its
high quality and extremely reliable sensors and speed control devices," said
David Klenk. He continued, "Our goal now will be to create a strategy that
builds upon this 40+ year history and positions Electro-Sensors for additional
growth and success." Brad Slye will remain with the company and lead its new
product development and integration efforts. "On behalf of the company, its
employees, board members and shareholders, I would like to thank Brad for his
years of dedicated service as the Company's CEO and President," said board
chair Joseph Marino. "We look forward to Brad's continued involvement as he
focuses on his new role."
Mr. Klenk has over 20 years of experience leading technology companies, most
recently as director and president of Harland Medical Systems, Inc., a
supplier of specialty coating materials and automation equipment for the
medical device industry. Previously, he held executive positions of
increasing responsibility, including director, president and COO, at August
Technology Corporation (now Rudolph Technologies, Inc.), a publicly-traded
company providing process-related inspection systems and software for the
microelectronics industry. Mr. Klenk currently serves on the boards of
Electro-Sensors and two privately-held companies. He holds an MBA from the
University of Arizona and a BS in Business Administration from Northern
In addition, the company has announced the appointment of Scott A. Gabbard to
the Electro-Sensors board of directors. Mr. Gabbard is currently CFO of
Magenic Technologies, Inc., a custom software development organization with
locations throughout the United States and the Philippines, where he has
helped guide the company through aggressive growth and expansion. Previously,
he was VP of Finance for August Technology Corporation, where he was
instrumental in the company's growth and eventual merger with Rudolph
Technologies. Prior to August Technology, Mr. Gabbard served in various roles
at U.S. Office Products, a publicly traded multi-billion dollar global office
products and services company. Mr. Gabbard brings extensive experience in all
facets of finance, accounting, M&A, tax, information technology and risk
management. Mr. Gabbard holds a BA in Accounting and Finance from the
University of Northern Iowa. Mr. Gabbard will serve on the company's Audit
Committee as its "audit committee financial expert" and on the company's
compensation and nominating committees.
Along with these leadership changes, the board of directors has also announced
that they have temporarily suspended the Electro-Sensors quarterly dividend.
The board is acutely focused on maximizing shareholder value and is suspending
the dividend to best position the company for renewed growth. "As you can see
by the recent changes to the Electro-Sensors board of directors and leadership
team, the company is actively working to build upon its solid foundation
established over the last several decades. We believe there are opportunities
to further grow and expand Electro-Sensors, and temporarily suspending the
quarterly dividend will give us the flexibility required to pursue these
opportunities as they become available," said Joseph Marino, chairman of the
Electro-Sensors, Inc. (NASDAQ:ELSE) is an industry leader in the design,
manufacture, and customer support of rugged and reliable Machine Monitoring
Sensors and Hazard Monitoring Systems for worldwide customers in the grain,
feed, milling, bio-fuels, power generation, wastewater, water utilities,
general manufacturing, and bulk material handling industries. Electro-Sensors'
products are renowned for providing years of reliable service and bring
safety, efficiency, and reliability to customers' operations and have set the
industry standard for ease of customer use. Headquartered in Minnetonka,
Minnesota, Electro-Sensors, Inc. supports its customers with a worldwide sales
and service organization.
Certain statements found in this release may constitute forward-looking
statements as defined in the U.S. Private Securities Litigation Reform Act of
1995. Forward-looking statements reflect the company's current views with
respect to future events and financial performance and include any statement
that does not directly relate to a current or historical fact. Forward-looking
statements can generally be identified by the words "believe," "expect,"
"anticipate" or "intend" or similar words. Forward-looking statements made in
this release include statements regarding the company's goals for future
growth and the impact of temporarily suspending quarterly dividend payments.
Forward-looking statements cannot be guaranteed and actual results may vary
materially due to the uncertainties and risks, known and unknown, associated
with such statements. Examples of risks and uncertainties for Electro-Sensors
include, but are not limited to, the company's ability to successfully execute
its growth strategy and manage executive and director personnel transitions,
as well as other factors described from time to time in our reports to the
Securities and Exchange Commission. Investors should not consider any list of
such factors to be an exhaustive statement of all of the risks, uncertainties
or potentially inaccurate assumptions investors should take into account when
making investment decisions. Shareholders and other readers should not place
undue reliance on "forward-looking statements," as such statements speak only
as of the date of this release.
Contact: David Klenk, 952-930-0100
SOURCE Electro-Sensors, Inc.
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