PHOTO: USA Mobility CEO Vincent Kelly
Investors should be aware
of a decrease in support from the world's most elite money managers
has turn sour on USA Mobility, due to its current condition and
future prospects.
Renaissance
Technologies, managed by Jim Simons has a $17.2 million position in
the stock, comprising less than 0.1%% of its portfolio.
Sitting
at the No. 2 spot is John Overdeck and David Siegel of Two Sigma
Advisors, with a $1.7 million position; the fund has less than 0.1%%
of its portfolio invested in the stock.
Other
peers with similar optimism include Chuck Royce's Royce &
Associates, Cliff Asness's AQR Capital Management and Ken
Griffin's Citadel Investment Group.
Judging
by the fact that USA Mobility has faced falling interest from the
aggregate hedge fund industry, it's safe to say that there is a sect
of funds that elected to cut their entire stakes last quarter.
At
the top of the bearish on USA Mobility heapis Steven Cohen's SAC
Capital Advisors who cut the biggest stake by the "upper crust"
of funds , that cut 200,000 shares of the stock.
Hedge
Funds are not happy that on April 5, 2013 USA Mobility announced that
it had receivea a NASDAQ Listing Compliance Letter Due to Late Filing
of Annual Report on Form 10-K. The NASDAQ had 60 days to regain
compliance with the stock market’s filing requirments for continued
listing.
The
notification comes after USA Mobility did not file its 2012 Form 10-K
with the Securities and Exchange Commission
Things
have gotten so bad for USA Mobility that they have started informing
many clients that their phone numbers will chabed, because the
company is forced to return leased blocks of numbers in a cost
cutting move that is designed to stay profitable.
In
yet another privacy violation that could result in a class action
lawsuit against USA Mobility. The company did an illegal wholesale
change of the passcode of clients access code to "1234"
without proper notification or authorization.
This
"1234" pass code universally put on USA Mobility lines
involved in number move left individuals, small business, healthcare,
government agencies and first responders' communications devises
vulnerable to malicious hackers and others.
Notifications
from the supposedly leading communications company went to
individuals, small business, healthcare, government agencies and
first responders only came after the fact in March 28, 2013 letter
deliver by snail mail.
Client
phone line greetings messages and other data were also erased by USA
Mobility who advised users to record a new greeting informing their
callers and customers of the number change that will take place on
June 4, 2013.
USA
Mobility has refused to help business clients with number portability
to other wireless companies, so that those businesses could keep bossiness numbers they had for decades.
Possible lawsuits from these security and privacy concerns, reminds many investors of The "City of Ontario v. Quon" case concerned the extent to which the right of privacy applies to electronic communications in a government workplace.
It involved USA Mobility when it was going under the name of Arch Wireless and SWAT team police officers of the Ontario Police Department. The case centered on the failure to protect personal data and the release of their very personal communications by what is now USA Mobility.
The
outlook for USA Mobility is not very good they is trending
downward and the company is rightsizing to handle this trend, but as
mentioned above the lack of competent employee base have lead to
privacy violations, losses of client data, security breaches and
maintenance / service disruptions.
One
regional manager has reported that she was the 3rd Regional Manager
in 3 years and that she saw little or no growth for career
advancement at USA Mobility.
Vincent
D. Kelly is President, Chief Executive Officer and Director of USA
Mobility, Inc. Prior to to the Mr. Kelly was a director of the failed
Metrocall from 1990 to 1996 and from May 2003 to November 2004. Mr.
Kelly was an executive officer of Metrocall at the time of its filing
of a petition under Chapter 11 of the Bankruptcy Code in 2002.
USA
Mobility is by far the largest legacy wireless paging provider in the
US, with over half the market from aggressive company acqustions, but
the best years for USA Mobility are behind us. World wide, paging
subscribers peaked in 2000 at almost 180 million and have declined
since.
USA
Mobility saw its subscribers dwindle from 6 million in 2004 to 1.9
million at the end of 2011 and industry insiders say the pace of
bloodletting at the legacy technology company has only increased,
because of poor management and a lack of vision.
USA
Mobility has struggled to remain profitable as revenues decline year
after year after year.. The company has been able to cut costs by
reducing infrastructure as its customer base falls, but there are
only so many paging broadcasting sites or employees to layoff before
the day of reckoning comes to Vince Kelly USA Mobility
Mr.
Kelly's biggest failure was that he did not have the vision get USA
Mobilitiy to move from pagers and into smart phones and tablets to
the company's formerly vast customer base.
Now
Vince Kelly is struggling to keep his head above water after having
USA Mobility borrow millions from Wells Fargo to buy a software
company that might allow him to keep his pagers in hospitals and
possibly be a reseller of mobility devises of the struggling third
place sprint network which has a very bad customer service record.
USA
mobility recently borrowed $52.5 million through a credit facility
from Wells Fargo Capital Finance to purchase Amcom Software, of Eden
Prairie, Minn., which sells phone operator console products to
hospitals in hositals. Amccom's PC-based software integrates with the
hospitals older PBX and admission and discharge systems. It appears
that USA Mobility CEO Vince Kelly hopes that USA mobility can sell
hospital waiting room pagers as an add on to the Amcoom hospital
phone system software.
It
appears that Vince Kelly lack of vision has USA Mobility showing to
the mobile devises party a bit too late, because
But
this lack of vision did not prevent Mr. Kelly's pals and fellow
directors at USA Mobility to give hime over two million bucks in
compensation in 2011.
Compensation
for 2011
Salary
$600,000
Restricted
stock awards
$723,598
All
other compensation
$23,062
Non-equity
incentive plan compensation
$723,602
Total
Compensation
$2,070,262
The
USA Mobility (formerly Arch Wireless) board of directors consist of
the following USA Mobility and its subsidiary employees.
Shawn
Endsley, USA Mobility CFO. Mr. Endsley earned an annual salary of
$191,559 with other income of $135,681, for a total of $374,042.
Colin
Balmforth, President Amcom Software, a subsidiary USA Mobility
James
Boso, President USA Mobility. Mr.Boso is 63 and made a salary of
$275,625 in 2010, with $260,080 in other income, for a total of
$535,705 for the year.
Bonnie
Culp-Fingerhut, Executive Vice President - Human Resources and
Administration of USA Mobility. In 2010, she made a salary of
$202,585, with other income of $187,683, for a total of $390,268.
Thomas
G. Saine is Chief Information Officer of USA Mobility. He made a
salary of $275,000, with other income of $253,019, for a total of
$528,019 in the year 2010.
Katherine
S. Bolseth CEO of Amcom Software, a subsidiary USA Mobility
Sean
P. Collins, Executive Vice President - Selling and Marketing of Amcom
Software, a subsidiary USA Mobility
Also,
Christopher D. Heim is a Director of USA Mobility,. He resigned as
President of Amcom Software, Inc., subsidiary of the company
effective June 30, 2012. Prior to USA Mobility's multi-million dolar
acquisition of Amcom Software. Mr. Heim has been the CEO of Amcom
(“President of Amcom”), an indirect wholly-owned subsidiary of
Company.
The
supposedly independent USA Mobility (formerly Arch Wireless)
directors all include persons invo;ved in the failed Metrocall and
Arch Wireless merger of 2004. And thehey include:
Royce
Yudkoff (Former Metrocall Director), Mr. Yudkoff is also a member of
the Compensation Committee
Nicholas
A. Gallopo (Former Metrocall Director). Mr. Gallopo is no longer a
licensed CPA, but he is the is the Chair of the Audit Committee of
USA Mobility.
Brian
O'Reilly (Former Metrocall Director). Mr.O'Reilly is a member of the
USA Mobility Nominating and Governance Committee and is the Chair of
the Compensation Committee.
Samme
L. Thompson is a member of the Compensation Committee and the Audit
Committee. Prior to the merger of Metrocall and Arch, Mr. Thompson
had been a director of Arch since 2002. Arch wireless changed it's
name to USA Mobility soon after the infamous Spream Court case, "City
of Ontario v. Quon"
Matthew
Oristano is a member of the Audit Committee and is Chair of the
Nominating and Governance Committee. Prior to the merger of Metrocall
and Arch Wireless, Mr. Oristano had been a director of Arch since
2002. Arch wireless changed it's name to USA Mobility soon after the
infamous Spream Court case, "City of Ontario v. Quon".
The
"City of Ontario v. Quon". case concerned the extent to
which the right of privacy applies to electronic communications
in a government workplace. It involved SWAT team police officers of
the Ontario Police Department and the release of their very personal
communications by Arch Wireless, who later changed their name to USA
Mobility.
With
a close knit board of directors like this, it is easy to see how USA
Mobility's CEO Vince Kelly can rake in over two million dollars in
compensation a year as the companies revenues fall year after year
after year after year.
For
over a week numerous attempt to reach USA Mobility's Corporate
Communications and / or Investor relations department. Numerous
requests were left with custmer service represenitives, thier
supervisors and USA Mobility Operations Manager Latricia Randle.
For
further information on what's left of USA Mobility please visit
http://www.usamobility.com