Aeroflex Incorporated Announces Plan to Divest Thin Film Interconnect Business.Business Editors PLAINVIEW, N.Y.--(BUSINESS WIRE)--Feb. 9, 2004 Aeroflex Incorporated (Nasdaq Symbol: ARXX), a leading designer, developer and manufacturer of automated testing (testing) automated testing - Software testing assisted with software tools that require no operator input, analysis, or evaluation. solutions and microelectronics for the aerospace, defense and broadband communications markets, announced today its decision to divest its thin film interconnect manufacturing business located in Pearl River, New York Pearl River is a hamlet (and a census-designated place) in Rockland County, New York, United States. The population was 15,553 at the 2000 census. Pearl River is in the western part of the Town of Orangetown. and to seek a strategic buyer. "Since our fiscal year 2002, this operation has not been profitable and considering our strategic direction of moving to higher value-added products, we no longer consider this business to be core to our ongoing operations," said Michael Gorin, President. "Our second quarter GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). results of operations ended December 31, 2003 will reflect an asset impairment charge of $5.8 million, net of tax ($.09 per share) to write down the net asset value of this business to its expected net realizable value Net realizable value (NRV) is a commonly used method of evaluating an asset's worth in the field of inventory accounting. NRV is part of GAAP rules that apply to valuing inventory, so as to not overstate or understate the value of inventory goods. . Commencing in our third quarter, the results of this operation will be shown as a discontinued operation discontinued operation A segment of a business that has been abandoned or sold or for which plans for one or another of these actions have been approved. See also continuing operations. and all prior periods will be restated to reflect a consistent classification treatment. Our second quarter pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma results of operations will reflect adjustments to eliminate both the asset impairment charge and operating results of this business from net income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the ." About Aeroflex Aeroflex Incorporated is a global provider of high technology solutions to the aerospace, defense and broadband communications markets. The Company's diverse technologies allow it to design, develop, manufacture and market a broad range of test, measurement and microelectronic products. The Company's common stock trades on the Nasdaq National Market System under the symbol ARXX and is included in the S&P SmallCap 600 index. Additional information concerning Aeroflex Incorporated can be found on the Company's website: www.aeroflex.com. All statements other than statements of historical fact included in this press release regarding Aeroflex's financial position, business outlook, business strategy and plans and objectives of its management for future operations are forward-looking statements. When used in this press release, words such as "anticipate," "believe," "estimate," "expect," "intend" and similar expressions, as they relate to Aeroflex or its management, identify forward-looking statements. Such forward-looking statements are based on the current beliefs of Aeroflex's management, as well as assumptions made by and information currently available to its management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors, including but not limited to, competitive factors and pricing pressures, the divesture of the thin film interconnect manufacturing business, the integration of the business of each of MCE See Media Center Edition. Technologies, Celerity ce·ler·i·ty n. Swiftness of action or motion; speed. See Synonyms at haste. [French célérité, from Old French, from Latin celerit Systems and the Racal Instruments Wireless Solutions Group with Aeroflex, changes in legal and regulatory requirements, technological change or difficulties, product development risks, commercialization difficulties and general economic conditions. Such statements reflect our current views with respect to the future and are subject to these and other risks, uncertainties and assumptions relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc Aeroflex's financial condition, results of operations, growth strategy and liquidity. Aeroflex does not undertake any obligation to update such forward-looking statements. |
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