Elcom International, Inc. to engage investment bank to evaluate potential strategic partners.NORWOOD, Mass.--(BUSINESS WIRE)--June 25, 1997--Elcom International, 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 :ELCO ELCO Eastern Lebanon County (school district, Pennsylvania) ELCO El Camino ELCO Electrolytic Capacitor ELCO Early Opening Local Census Office ELCO Electronic Company ) today announced that its Board of Directors has unanimously authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: the Company to engage an investment banking firm with a view to maximizing stockholder value. The selected firm will assist the Company by coordinating and evaluating options which would enable the strategic potential of the Company to be realized. These actions could include evaluating the possible sale or merger of the Company, strategic financing options, and evaluation of potential strategic partners. The rapid growth of the Company and 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 have prompted the Company to undertake this initial step. The Company believes that any such arrangement with a strategic partner would have a number of significant benefits for the Company. 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. stated, "The Company is profitable and has experienced strong growth with revenues increasing from $58 million in 1994 to $620 million in 1996 with significant growth in both 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 United Kingdom marketplaces. The Board of Directors believes that the Company's ability to enhance its growth by acquisitions is limited by the current valuation of the Company's common stock. An appropriate arrangement with a strategic partner could help unlock the intrinsic potential of the Company for the ultimate benefit of its stockholders and personnel." The Company believes that Catalink Direct, the subsidiary which uses the Company's electronic commerce technology to support the marketing and sales of personal computer products and services, could provide a strategic partner with a growing services business and the opportunity to expand its customer base in the United States and United Kingdom. In addition, the Company believes that an appropriate strategic partner could provide its Elcom Systems software subsidiary with additional opportunities to leverage its electronic commerce technology. 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 on 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. Elcom Systems, the Company's technology subsidiary, licenses PECOS to companies in various industries which allows them to create interactive enterprise-level electronic catalog catalog, descriptive list, on cards or in a book, of the contents of a library. Assurbanipal's library at Nineveh was cataloged on shelves of slate. The first known subject catalog was compiled by Callimachus at the Alexandrian Library in the 3d cent. B.C. and ordering systems to facilitate the conduct of electronic commerce with their customers. Catalink Direct, the Company's other subsidiary, uses the Company's PECOS technology to market and sell PC products to business and corporate customers and operates 19 field sales and support offices in the United States and 7 in the United Kingdom. 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 With the exception of the historical information contained in this release, the matters described herein contain 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. that involve risks and uncertainties which might cause the results of such forward-looking statements to differ materially from those anticipated. Regarding the Company's evaluation of possible strategic partners, 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, could 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. Other risks and uncertainties for the Company include the industry's acceptance and usage of electronic commerce software systems, control of expenses, levels of gross margins, revenue growth, overall business conditions, price decreases of PC products, corporate demand for PC products, implementation of internal business and information systems, risks associated with acquisitions of companies, and the consequent results of operations given the aforementioned factors, and the other risks detailed from time to time in the Company's 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. CONTACT: Elcom International, Inc. 617/440-3333 Automated Investor Voicemail: x4303 Investor Relations Investor relations The process by which the corporation communicates with its investors. : Peter McAree, x4260 Internet: invrel@elcom.com Homepage: www.elcominternational.com |
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