ROCKY HILL, Conn., Dec. 3, 2007 (PRIME NEWSWIRE) -- Axsys Technologies, Inc. (Nasdaq:AXYS), a global leader in the design and development of high-performance surveillance cameras, imaging systems and related motion control technologies, today announced the sale of its distributed products business. In addition, Axsys' management announced the implementation of a new organizational and reporting segment structure, and the hiring of a new business executive.
Sale of Distributed Products Business
The company has completed the sale of its Distributed Products business, known as AST Bearings, to an affiliate of Tonka Bay Equity Partners, LLC for $15.5 million in cash, subject to a working capital adjustment, with an estimated after-tax gain of $2.0 million. Proceeds from the sale will be used to pay down all of Axsys' existing debt, leaving the company with an expected cash balance in excess of $10.0 million at year end.
The sale of this non-strategic business will allow the company to focus its financial resources and devote greater management attention to its core businesses. AST Bearings' operating results for the fourth quarter through November plus the gain on the sale of the business will be recorded as a discontinued operation in the fourth quarter of 2007.
"The successful sale of AST Bearings marks the culmination of Axsys' transformation into a focused organization concentrating on the delivery of high-performance optical and motion control technologies to the security, defense, and space markets," said Stephen W. Bershad, Chairman and CEO of Axsys Technologies. "In addition, with a debt-free balance sheet we are well positioned to invest in the growth of our company."
Organizational Changes
To align the company around core market segments, Axsys is reorganizing into two business units, the Surveillance Systems Group and the Imaging Systems Group, both of which will report to Scott B. Conner in his new role as Axsys' President and Chief Operating Officer. Beginning with the fourth quarter report for fiscal year 2007, the company's financial reporting will reflect the new segment structure.
The Surveillance Systems Group will encompass all of the company's surveillance product lines, which consist of all infrared cameras and gyro-stabilized camera systems. Randy A. Moore, formerly Executive Vice President and General Manager of Kollsman, Inc., has joined the Axsys team as the new Group President of this business. During his four years at Kollsman, Mr. Moore grew its electro-optical systems business and substantially improved the market position of its infrared surveillance camera products. Mr. Moore is a retired Lieutenant Colonel in the U.S. Air Force.
The Imaging Systems Group will include all of Axsys' optical and motion control sub-system businesses, including the infrared lens and positioning systems product lines. The optical businesses will be led by James W. Howard, formerly Vice President and General Manager of the Infrared Optics business unit and the founder of Telic Inc., which he sold to Axsys in 2004. The motion control businesses will continue to be managed by Chalmers "Bud" Jenkins.
"The rapid growth of our business has precipitated these exciting new changes," continued Mr. Bershad. "We are reorienting the business to focus on market requirements, and simultaneously adding depth and breadth to our management team. I am particularly pleased to welcome Randy Moore to Axsys Technologies."
About Axsys
Axsys Technologies, Inc. is a global leader in the design and development of high-performance surveillance cameras, imaging systems and related motion control technologies, serving the aerospace, defense, and high performance commercial markets. For more information, visit www.axsys.com.
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. One can identify these forward-looking statements by the use of the words such as "expect," "anticipate," "plan," "may," "will," "estimate" or other similar expressions. Because such statements apply to future events, they are subject to risks and uncertainties that could cause the actual results to differ materially. Important factors, which could cause actual results to differ materially, are described in Axsys' reports on Form 10-K and Form 10-Q on file with the Securities and Exchange Commission, including without limitation: changes in the U.S. federal government spending priorities; the Company's ability to compete in the industries in which it operates, including the introduction of competing products or technologies by other companies and/or pricing pressures from competitors and/or customers; the potential for the Company's backlog to be reduced or cancelled; the Company's ability to implement its acquisition strategy and integrate its acquired companies successfully, including the recent acquisition of Cineflex; the Company's ability to manage costs under the Company's fixed-price contracts effectively; the Company's cash needs for the remainder of 2007; and changes in general economic and business conditions. These statements reflect the Company's current beliefs and are based upon information currently available to the Company. Be advised that developments subsequent to this release are likely to cause these statements to become outdated with the passage of time, and we specifically disclaim any obligation to update these statements.