DSP Technology to Relocate Corporate Headquarters and Consolidate Transportation Group Operations in Ann Arbor, Mich.FREMONT, Calif.--(BUSINESS WIRE)--Jan. 21, 1999--DSP Technology Inc. (Nasdaq:DSPT DSPT Dominican School of Philosophy and Theology (Berkeley, California) DSPT Data Systems Product Team ) Thursday announced that it will relocate re·lo·cate v. re·lo·cat·ed, re·lo·cat·ing, re·lo·cates v.tr. To move to or establish in a new place: relocated the business. v.intr. corporate headquarters to and consolidate its Transportation Group operations in Ann Arbor Ann Arbor, city (1990 pop. 109,592), seat of Washtenaw co., S Mich., on the Huron River; inc. 1851. It is a research and educational center, with a large number of government and industrial research and development firms, many in high-technology fields such as , Mich. The company will record one-time after-tax charges for the fourth quarter and fiscal year ending Jan. 31, 1999, of approximately $370,000, for reductions of manufacturing and administrative staff of approximately 30 people and the consolidation of Fremont facilities to more efficient, smaller quarters. "After the move and consolidation is complete, earnings should benefit from a lower cost structure and improved operating efficiencies. We will achieve higher sales in the current quarter, compared to the same quarter last year, and expect to report a net profit for the quarter after the one-time charges associated with this relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. ," said F. Gil Troutman, president and chief executive officer of DSP (1) (Digital Signal Processor) A special-purpose CPU used for digital signal processing applications (see definition #2 below). It provides ultra-fast instruction sequences, such as shift and add, and multiply and add, which are commonly used in math-intensive Technology. Troutman explained that manufacturing, sales and service for the Transportation Group would be consolidated with corporate headquarters into a single, company-owned facility in Ann Arbor by the end of calendar 1999. The Transportation Group accounts for 85 percent of the total sales and is the company's most profitable business segment. "We are committed to continuing our investments in developing new Signal Analysis and General Data Acquisition products and will combine these two businesses into a single operation with its own manufacturing capability. This new business unit will relocate in mid-year, together with the corporate engineering group, to a single, smaller building in Fremont, Calif.," he said. DSP Technology is a world leader in the design and manufacture of high-speed, computer-automated, measurement and control instrumentation and systems. For the fourth quarter ended Jan. 31, 1998, DSPT reported net income of $609,000, or 23 cents per 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. share, on net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of $6,234,000. The company currently has approximately 160 employees. This news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. concerning expected future sales and earnings for DSPT. All forward-looking statements are subject to risk and actual results could differ materially from those projected in the forward-looking statements as a result of many factors. These factors include the mix of products sold; ability to successfully manage the consolidation and relocation of facilities; competition; timing of receipt of system orders; ability to successfully manage system integration projects; availability of components; recruitment and retention of key technical personnel; and economic conditions. Further information concerning factors that may affect DSPT's performance is provided in DSPT's reports filed with the Securities and Exchange Commission. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion