California Microwave to acquire Microwave Networks Inc. a wireless products company.SUNNYVALE, Calif.--(BUSINESS WIRE)--Jan. 31, 1995--California Microwave, Inc. (NASDAQ/NMS: CMIC CMIC CPU Management Interface Controller CMIC Caucasus Media Investigations Center (Baku, Azerbaijan) CMIC Combined Military Interrogation Center (Vietnam) CMIC Configuration Management Information Center ) announced Tuesday that it has signed a definitive agreement to acquire, for 3,350,000 shares of common stock, Microwave Networks Incorporated (MNI See Merom New Instructions. ), a privately held, Houston-based manufacturer of microwave radios for the cellular and personal communications (PCS/PCN) markets. The transaction, which will be accounted for as a pooling of interests Pooling of Interests An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together. Notes: The opposite of pooling of interests is the purchase acquisition method. , is expected to close in March 1995. Broadened Microwave Radio Market Position Founded in 1981, MNI supplies a full line of digital microwave radios to cellular and telephone common carriers predominantly in Asia/Pacific, Eastern Europe Eastern Europe The countries of eastern Europe, especially those that were allied with the USSR in the Warsaw Pact, which was established in 1955 and dissolved in 1991. and Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. . The acquisition will increase California Microwave's position in wireless communications wireless communications System using radio-frequency, infrared, microwave, or other types of electromagnetic or acoustic waves in place of wires, cables, or fibre optics to transmit signals or data. and accelerate its penetration of high-growth markets in developing countries. MNI derives some 90% of its revenue from international customers, and has sales/service offices in Australia, China, Mexico, the Philippines, Singapore and the U.K. MNI's product strength is concentrated in the 13 to 23 GHz frequencies. Product Revenue Will Expand Considerably Philip F. Otto, chief executive officer of California Microwave stated, "The acquisition of Microwave Networks advances our strategic thrust in high value-added telecommunications products, substantially broadens our wireless customer base and allows us to benefit from significant international market positions developed by MNI." Following completion of the transaction, MNI will become a part of California Microwave's Wireless Products Group. Wireless product sales reached 41% of total sales in the first half of California Microwave's 1995 fiscal year. Non-dilutive Acquisition MNI's revenues for its fiscal year ended June 30, 1994, were $37 million. Its revenues for the six months ended December 31, 1994, were $29 million and it is anticipated that its revenues will be in the $60 million range in its fiscal year ending June 30, 1995. The acquisition is expected to be non-dilutive to future earnings per share except for the effect in fiscal 1995 of one-time expenses relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the transaction. The transaction is subject to obtaining regulatory approvals and approvals by both California Microwave's and MNI's shareholders. After completion of the transaction, MNI's shareholders will own approximately 18% of California Microwave's shares on a fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis. California Microwave, Inc. is a leader in satellite and wireless communications. Founded in 1968, the company operates facilities in seven states and sells into 75 countries. California Microwave is the leading U.S. supplier of telecommunications satellite earth stations and microwave radios used in wireless communications. Its strategy calls for significant expansion in the wireless area. CONTACT: California Microwave Stephanie Day, 408/720-6229 Microwave Networks Incorporated Wendy Yang yang (yang) [Chinese] in Chinese philosophy, the active, positive, masculine principle that is complementary to yin; see yin, under principle. , 713/495-7123 William Dunk Partners Deborah Passik, 214/960-9611 |
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