Tuesday, August 29, 2006
Andrew Corporation to Exit Automotive and Mobile Antenna Product Lines
--Further Strengthens Focus On Core Product Groups
Andrew Corporation, a global communications systems and equipment supplier, is exiting its automotive and mobile antenna product lines and selling the mobile antenna product line to PCTEL, Inc., for $10 million in cash.
Under a definitive agreement, PCTEL, based in Chicago, will purchase Andrew's mobile antenna product line including global positioning satellite (GPS), consumer and professional antenna products. The transaction is expected to close within the next 30 days.
Additionally, Andrew will discontinue service and manufacturing for its automotive antenna product line. Existing automotive antenna customers will be transitioned to alternative suppliers.
Andrew expects to record a $7.1 million pre-tax loss in its fiscal fourth quarter related to exiting the automotive and mobile antenna product lines. Combined sales for the automotive and mobile antenna product lines were $29 million in fiscal 2004.
About Andrew
Andrew Corporation (NASDAQ:ANDW) designs, manufactures and delivers innovative and essential equipment and solutions for the global communications infrastructure market. The company serves operators and original equipment manufacturers from facilities in 33 countries. Andrew (www.andrew.com), headquartered in Orland Park, IL, is an S&P 500 company founded in 1937.
Forward Looking Statements
Some of the statements in this news release are forward looking statements and we caution our stockholders and others that these statements involve certain risks and uncertainties. Factors that may cause actual results to differ from expected results include the company's ability to integrate acquisitions and to realize the anticipated synergies and cost savings, the effects of competitive products and pricing, economic and political conditions that may impact customers' ability to fund purchases of our products and services, the company's ability to achieve the cost savings anticipated from cost reduction programs, fluctuations in international exchange rates, the timing of cash payments and receipts, end use demands for wireless communication services, the loss of one or more significant customers, and other business factors. Investors should also review other risks and uncertainties discussed in company documents filed with the Securities and Exchange Commission.
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