Elcom International, Inc. Announces Decision To Pursue On-going Discussions With Potential Strategic Partners.NORWOOD, Mass.--(BUSINESS WIRE)--Dec. 18, 1997--Elcom International, Inc.'s (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 :ELCO ELCO Eastern Lebanon County (school district, Pennsylvania) ELCO El Camino ELCO Electrolytic Capacitor ELCO Early Opening Local Census Office ELCO Electronic Company ) Board of Directors has decided to continue to pursue on-going dialogues with several companies which may result in the possible sale or merger of the Company, or other strategic financing option, as previously announced. The Board of Directors' belief that the Company's stock is undervalued Undervalued A stock or other security that is trading below its true value. Notes: The difficulty is knowing what the "true" value actually is. Analysts will usually recommend an undervalued stock with a strong buy rating. in the marketplace has prompted the Company to continue this course. Robert J. Crowell, the Company's Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , said "Working closely with Salomon Smith Barney Smith Barney is a division of Citigroup Global Capital Markets Inc., a global, full-service financial firm, that provides brokerage, investment banking and asset management services to corporations, governments and individuals around the world. as its advisor over the past several months, the Company has evaluated various methodologies to maximize stockholder value. As the Company continues its operating leverage Operating Leverage A measurement of the degree to which a firm or project relies on fixed rather than variable costs. Notes: The higher the degree of operating leverage, the greater the potential danger from forecasting risk. momentum and earnings generation, the Company believes its common stock value will appreciate. The Company is of significant size and the discussions involving any strategic relationship or acquisition of this scale can only be accomplished at their own pace. The Company has placed itself in a position to continue to evaluate the best strategic alternative which (it believes) will maximize stockholder value." Mr. Crowell continued by saying, "The best selection from the various alternatives to maximize value is more important for the Company's stockholders than the specific timing of any strategic transaction. This evaluation and related on-going discussions will continue into the first quarter and any announcement will be made at the appropriate time. In addition, with revenues expected to be approximately $1 billion in 1998, we must ensure that any strategic alternative supports the Company's expected domestic and international growth for the future." About Elcom International, Inc. Elcom International, Inc., through two wholly-owned subsidiaries, develops, licenses, and uses client/server transaction-based software systems which enable the conduct of PC-based interactive electronic commerce over private and/or Internet Protocol See Internet and TCP/IP. (networking) Internet Protocol - (IP) The network layer for the TCP/IP protocol suite widely used on Ethernet networks, defined in STD 5, RFC 791. IP is a connectionless, best-effort packet switching protocol. networks. Catalink Direct, the Company's PC remarketing subsidiary, uses the Company's electronic commerce (PECOS) technology to market and sell PC products and operates 15 field sales and support offices in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and 7 in the United Kingdom. Elcom Systems, the Company's technology subsidiary, licenses PECOS to companies in various industries which allows them to create interactive enterprise-level electronic catalog and ordering systems to facilitate the conduct of electronic commerce with their customers. Statement Under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and Except for the historical information contained in this release, the matters described herein contain forward-looking statements that involve risks and uncertainties which might cause the results of such forward-looking statements to differ materially from those anticipated. Such risks and uncertainties include: the industry's acceptance and usage of electronic commerce software systems, the impact of competitive technology products and pricing, control of expenses, levels of gross profits, revenue growth, overall business conditions, price decreases of PC products, corporate demand for PC products, the success and timing of implementing the Company's new management information system, availability of appropriate financing, risks associated with acquisitions of companies, the consequent results of operations given the aforementioned factors, and other risks detailed in the Company's 1996 Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and from time to time in the Company's other SEC reports, including the Company's prospectus included as part of the S-1 Registration Statement declared effective on December 19, 1995 under the Securities Act of 1933. Regarding the Company's evaluation of possible strategic partners and financing options, there can be no assurance that any strategic alternatives, including any possible arrangements with a strategic partner or the possible sale or merger of the Company, can be successfully identified or solicited, negotiated, or consummated to the betterment bet·ter·ment n. 1. An improvement over what has been the case: financial betterment. 2. Law An improvement beyond normal upkeep and repair that adds to the value of real property. of the Company or the Company's stock price, or what the timing, terms, or ultimate impact of any such arrangement might be. CONTACT: Elcom International Tom Barth, 781/501-4094 Homepage: www.elcominternational.com |
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