Excel Technology acquires Photo Research division of Kollmorgen Corp.HAUPPAUGE, N.Y.--(BUSINESS WIRE)--Oct. 6, 1995--Excel Technology 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 : XLTC) today announced the acquisition of Photo Research of Chatsworth, California, a division of Kollmorgen Corporation (NYSE NYSE See: New York Stock Exchange : KOL KOL Kings of Leon (UK band) KoL Kingdom of Loathing (online game) KOL Key Opinion Leaders KOL Key Opinion Leader KOL Kiss on Lips KOL Key Objects Library KOL Knights of Labor KOL Key-Oriented List ), for $3.5 million in cash. With annual revenues of approximately $7.0 million, the company has an established brand name and an excellent reputation in the light measurement and display markets. Dr. Rama Rao, Excel chairman/CEO stated "This is a strategic acquisition driven by both business and financial considerations. It will enable us to expand into a new and emerging display market for consumer applications. The company's Light Measurement Instruments are sold worldwide to a variety of manufacturers (CRT (1) (C RunTime) See runtime library. (2) (Cathode Ray Tube) A vacuum tube used as a display screen in a computer monitor or TV. The viewing end of the tube is coated with phosphors, which emit light when struck by electrons. , flat panel) in computers, automotive and commercial aerospace. Their most recent product, Video Display Inspection Systems are integrated with proprietary software and are used for on-line inspection, adjustment and alignment in the growing field of Flat Panel Display A thin display screen for computer and TV usage. The first flat panels appeared on laptop computers in the mid-1980s, and the LCD technology became the standard. Stand-alone LCD screens became available for desktop computers in the mid-1990s and exceeded sales of CRTs for the first time , Large Screen Computer Monitor and HDTV (High Definition TV) A set of digital television (DTV) standards that offer the highest resolution and sharpest picture. Although some HDTV sets are available in standard (rather square) screen sizes, the overwhelming majority of sets are wide screen, which eliminates markets." Rao continued, "There are numerous synergies between Photo Research and The Optical Corp., one of our subsidiaries located nearby in Oxnard, California Oxnard is the largest city in Ventura County, California in terms of population. It is located at the western edge of the fertile Oxnard Plain, and is one of the world's most important agricultural centers, with its distinction as the strawberry and lima bean capital. . They both employ photonic technology and sell optical products. The Optical Corp. has a record of being profitable, while it has limited growth potential. Photo Research provides significant opportunity for growth in the video and display markets. Photo Research has consistently experienced excellent gross margins, but they have been at about breakeven operationally. Bill McIntyre, president of The Optical Corp. will also serve as president of Photo Research. Bill had done an excellent job in managing Optical Corp.'s assets and making it profitable in record time. Now he will have a similar opportunity at Photo Research supported by a strong management team. Pierre Buckens will continue as general manager and will lead the product development activities. Ron Anderson, currently president of Kollmorgen Instrument Co., with his superior strategic marketing skills will be available to Photo Research on a part time basis, as director of New Business Development." Rao concluded, "Although there is no assurance, our near-term goal for Photo Research is to generate an operational pre-tax profit of $1.0 million in 1996; an average 30% return on Excel's investment. Combining Photo Research and Optical Corp. into one consolidated operation will strengthen management and provide additional savings. We expect the combined operation will have a solid foundation for profitable growth, which should help improve overall corporate gross margins and operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. in 1996 and beyond." Excel and its wholly-owned subsidiaries develop, manufacture and market Electro-optics and laser systems/components for industrial, medical and consumer applications. CONTACT: Excel Technology Inc. J. Donald Hill, President Dennis Byrne, Investor Relations Investor relations The process by which the corporation communicates with its investors. 516/273-6900 |
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