GSE Systems  Shareholders for Change







GSE Systems, Inc

Mr. William Corey, Director

Mr. Suresh Sundaram, Director

Mr. Thomas J. Dougherty, Director

6940 Columbia Gateway Dr., Suite 470

Columbia, MD 21046



Independent Directors of Board,


After our September 12th letter to the Board of Directors of GSE Systems, I reluctantly accepted an invite for a conference call with Mr. Kyle Loudermilk and Ms. Kathryn O’Connor to hear what Board has to convey regarding the shareholder concerns even though both individuals that Board picked to convey this message have played a pivotal role to oversee the decline of shareholder value and the owners feel that business would be well served if they resign. Sadly, the company’s reaction on the call and since that call can only be described as dismissive.


Based on the response I received from Ms. Connor when asked about the Management’s performance and shareholder concerns, it appears either the Board is completely oblivious to the current state of business affairs and what has transpired with the business over the last few years or they are simply acting as accomplices of the CEO. It is insulting to shareholders if Chairwoman thinks that releasing a new investor presentation with hopes of revenue growth allays the concerns of owners of GSE Systems after years of value destruction. GSE Systems latest investor presentation is no different than the “2020 roadmap” shared by CEO Kyle Loudermilk in 2017 with hopes of reaching 200million in revenue by 2020. With Mr. Kyle Loudermilk as CEO, our business cannot grow or even sustain. Please review the facts and his track record over the last 7 years of his tenure. Mr. Kyle Loudermilk has no clue on how to Operate this business. He was the wrong choice to lead our business and should immediately tender his resignation.


The Board should also revisit its choice and accept the resignation of Chairwoman Ms. Connors rather than act undemocratically and not accept the clear desire of the Company’s shareholders to remove Ms. Connor from the Board. It’s quite clear to the shareholders that she only views GSE Systems, Inc as a compensation vehicle and has no concern for shareholder value.


I would like to remind you that you are independent directors and not under the control of Mr Kyle Loudermilk, and that each director should fulfill his or her fiduciary duties and truly represent the interests of all shareholders. If you are truly independent, then you are capable to do an unbiased assessment of GSE Systems management.


Mr. Kyle Loudermilk has mismanaged GSE Systems Inc for the last 7 years. He has consistently paid himself bonuses despite negative shareholder returns. We urge you to consider the following in relation to Mr. Kyle Loudermilk's performance.


1. Review the financial performance of the business under his oversight.

2. Review the financial performance of Nuclear Simulation segment under his oversight.

3. Review the vacant sales positions under his watch.

4. Review the employee morale under his leadership.

5. Speak with Shareholders on what they think about the CEO.


Enough is enough. Time has come to break up the Country Club atmosphere that has overseen the erosion of shareholder value. In case the Board has forgotten, I would like to remind that GSE Systems, Inc is a public company, and the true owners of the business are shareholders. Is each Board member aware of the reputational risk in not honoring the clear intentions of the Company’s owners?


Shareholders deserve better. You can do better.




Ankur Saggar

Ph: (646)420-4306