From today's 13D filing:
Advanced Analogic Technologies Incorporated
830 East Arques Avenue
Sunnyvale, California 94085
Attn: Board of Directors
Dear Members of the Board:
Dialectic Capital Partners, LP, together with its affiliates, currently own 2,960,629 shares of Common Stock of Advanced Analogic Technologies Incorporated (the “Company”), constituting approximately 7.0% of the outstanding shares. As significant stockholders of the Company, we are troubled by the Company’s disappointing stock price performance. In our view, this is a reflection of poor financial performance and a failure to execute a viable growth strategy. We believe these issues are directly attributable to the current management and the Board, who must be held accountable for the losses endured by long-term stockholders. Accordingly, we intend to nominate individuals for election to the Board at the Company’s 2011 annual meeting of stockholders (the “2011 Annual Meeting”). We believe the election of our independent nominees will help ensure the best interests of stockholders are properly represented on the Board.
As you are aware, since the Company’s IPO the Company has been unable to maintain consistent growth or profitability. Although the CEO is a highly respected engineer, we believe he has failed to translate his engineering talents into consistent profits for shareholders. In addition, the Chairman has a history of unsuccessful related party transactions involving other entities, and we would be disappointed if we discovered that he is leading the Company down a similar path.
That is why we strongly believe a reconstituted Board with independent stockholder representatives is required to reverse the long, steep decline in stockholder value. In our opinion, a reconstituted Board focused on reviewing all strategic alternatives, including a sale of the Company, presents the best opportunity of increasing value for all stockholders. Accordingly, we intend to hold the Board fully accountable for any ill-advised transactions or other actions that erode stockholder value until stockholders have an opportunity to vote at the 2011 Annual Meeting.
Very truly yours,
Dialectic Capital Partners, LP