Consolidated Technologies makes announcement.NEW YORK--(BUSINESS WIRE)--Feb. 28, 1995--Concept Technologies Group Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CTGI CTGI Capital Title Group Inc , CTGIW), headquartered in Knoxville, Tenn., said Tuesday it intends to sell a controlling interest controlling interest The ownership of a quantity of outstanding corporate stock sufficient to control the actions of the firm. Controlling interest often involves ownership of significantly less than 51% of a firm's outstanding stock because many owners fail to Consolidated Technology Group Ltd., (NASDAQ: COTG) headquartered in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , in exchange for all the stock of Trans Global Services Inc. (TGS TGS Tokyo Game Show TGS Ticket-Granting Service TGS Ticket-granting Server TGS The Good Shepherd TGS Teen Girl Squad TGS The Gargoyles Saga TGS Texas Gourd Society TGS Tomato Growers Supply TGS Trinity Grammar School TGS Tomographic Gamma Scanner ), a wholly-owned subsidiary of Consolidated. Under terms of a letter of intent, Concept Technologies, which currently has approximately 1.5 million shares issued and outstanding, will issue to Consolidated the equivalent of 3 million shares of its common stock in exchange for all of the outstanding stock of TGS. Upon completion of this transaction, Trans Global Services will become the principal business of Concept Technologies. The parties hope to close the transaction as soon as possible. The closing is subject to the execution of definitive agreements and related matters. Trans Global Services (TGS) is based in Hauppauge, N.Y. and has 8 offices nationwide. The company currently employs approximately 980 engineers, designers, and technical personnel providing project and logistical staff support for TGS clients - including major corporations such as Grumman, General Electric, Martin Marietta Martin Marietta Corporation was founded in 1961 through the merger of The Martin Company and American-Marietta Corporation. The combined company became a leader in aggregates, cement, chemicals, aerospace, and electronics. , Honeywell, and Dow Chemical. The president of TGS, Joseph G. Sicinski, has had more than 30 years of executive experience in outsourcing engineers for Fortune 500 clients. According to Sicinski, in the outsourcing industry it is customary for companies like TGS to pay its employees before they get paid by their customers. Consequently, TGS must finance receivables, and the cost of that money is a significant factor in the profitability of the business. Sicinski expressed the hope that completing the transaction with Concept Technologies would enable TGS to develop a stronger equity base, and reduce financing costs. He also felt the current environment was an excellent one for companies like TGS. He said "By moving from one high priority project to the next, engineers employed by TGS can remain continuously at the cutting edge of their fields, and this has never been as important a career consideration as it is today." Sicinski also observed that because dominant firms in key industries like electronics, aerospace, telecommunications, power, and petrochemicals have already made the strategic decision to downsize Downsize Reducing the size of a company by eliminating workers and/or divisions within the company. Notes: When a company downsizes, it is attempting to find ways to improve efficiency and increase profitability. It is sometimes referred to as trimming the fat. , and to outsource, client recruitment is considerably easier today than it had been in the past. Concept Technologies, which completed its initial public offering in February of 1994, owns and operates the Klipsch Professional Loudspeaker business, and, through its Audio Animation subsidiary, is the developer and owner of several proprietary technologies with potential licensing applications in environmental noise cancellation, medical monitoring, defense and communications. For the nine months ended Sept. 30, 1994, Concept Technologies reported a loss of $800,000, or 63 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , on revenues of $1.6 million. Substantially all of the revenues were generated by the Klipsch operation. The operations of TGS include the operations of the RMI (Remote Method Invocation) A standard from Sun for distributed objects written in Java. RMI is a remote procedure call (RPC), which allows Java objects (software components) stored in the network to be run remotely. Group from November 1994. If the results of operations of the RMI Group were included from Jan. 1, 1994, on a 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 basis, TGS would have estimated revenues of approximately $64 million on which it would have sustained an estimated loss of approximately $800,000 for the year ended Dec. 31, 1994. In addition to Trans Global Services, Consolidated Technology Group Ltd., through its operating subsidiaries owns companies that are engaged in the fields of magnetic imaging, manufacturing, telecommunications, three dimensional imaging, software development for the management of entitlement programs. CONTACT: Consolidated Technology Group, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Lewis S. Schiller, 212/233-4500 or Concept Technologies Inc., Knoxville Milton E. McNally, 615/689-4944 or Equity Communications Ira Weingarten, 805/897-1880 |
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