Excel Technology signs letter of intent to acquire Cambridge Technology.HAUPPAUGE, N.Y.--(BUSINESS WIRE)--Jan. 16, 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) announced today that it has signed a letter of intent to acquire Cambridge Technology Inc., located in Watertown, Mass. Cambridge Technology is a technology leader in the growing field of optical scanners See scanner. - an essential component of all systems that employ moving laser beams. The purchase price will be $4,750,000 plus additional amounts based on future performance. This will be mostly a cash transaction and will be internally funded. The proposed transaction is subject to, among other things, execution of definitive agreements and the ability to obtain audited financial statements. The proposed transaction is expected to close in the current quarter. Dr. Rama Rao, Excel A full-featured spreadsheet for Windows and the Macintosh from Microsoft. It can link many spreadsheets for consolidation and provides a wide variety of business graphics and charts for creating presentation materials. Chairman/CEO stated, "Cambridge has been profitable almost since its inception, and has demonstrated impressive growth both in revenues and profits. As per Cambridge's unaudited statements unaudited statement A financial statement prepared by an auditor but not in accordance with generally accepted auditing standards. Unaudited statements are prepared to less rigorous standards than audited statements. Compare audited statement. , revenues for the fiscal year ended June 30, 1994 were $4.6 million, an increase of 47% as compared with revenues of $3.1 million in fiscal 1993. Most importantly Adv. 1. most importantly - above and beyond all other consideration; "above all, you must be independent" above all, most especially , the 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. Margins, before taxes, for the fiscal year 1994 were 16% in comparison to 9% in 1993 - an increase of 80%. Had Excel owned Cambridge in 1994, based on Cambridge's estimated results for calendar 1994, we believe our fully-diluted, after-tax earnings for the calendar year would have been about $.06 per share higher - an estimated increase of more than 25%. We expect Cambridge's revenue and income to improve significantly for calendar year 1995 and their contribution to our EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. will be even greater." Dr. Rao concluded, "Strategically, Cambridge 1) provides vertical integration of our industrial laser business, 2) allows us to enter into new markets, possibly in the consumer arena, with their enabling technology, and 3) is expected to improve overall corporate gross margins and operating income margins. We are very pleased with the prospect of bringing Cambridge into our family. Bruce Rohr, Cambridge Founder and President and his management team have done a superb job in building this company and we are delighted that Bruce will remain as Cambridge's President." Cambridge Founder/President Bruce Rohr commented, "The synergy The enhanced result of two or more people, groups or organizations working together. In other words, one and one equals three! It comes from the Greek "synergia," which means joint work and cooperative action. between Excel and Cambridge is substantial and we are excited about joining forces with them. This combination should significantly accelerate achieving our mutual goals of profitable expansion in our industry. We share Excel's vision of laser industry consolidation and we would like to be associated with a company that has both the management team and the balance sheet to support and finance these activities." Excel and it wholly owned subsidiaries Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. develop, manufacture and distribute systems for science, industry and medicine. CONTACT: Excel Technology Inc. J. Donald Hill, 516/273-6900 |
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