Lantronix settles U.S. Software litigation: company continues progress in resolving old disputes; will issue stock.Lantronix Lantronix is an Irvine, California based manufacturer of LAN-attached serial and parallel access devices, print-servers and terminal server products. Early products included the P4000 terminal server capable of communicating with LAT and TELNET protocols. , Inc. (Nasdaq: LTRX), has announced that the company has reached a settlement of the securities and employment claims brought by the founders of 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. Software Corporation, a company Lantronix acquired in December 2000. "We are pleased to have eliminated another old dispute from our plate, as we continue to reposition Lantronix for the future," said Marc Nussbaum, 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. and President of Lantronix. "I am especially pleased that we were able to use stock to resolve the matter and avoid a substantial cash settlement. We continue to carefully manage the company's cash while investing for long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. profitability and growth." Under terms of the settlement, Lantronix will release approximately $400,000 in cash and 49,038 shares of Lantronix stock already set aside in an escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. . The release of the cash and shares from escrow does not reduce the company's cash balance, as the escrow was established and the cash and shares set aside at the time of the U.S. Software Acquisition in December 2000. In addition, Lantronix will issue additional shares of common stock with an aggregate value of approximately $1.5 million upon receipt of court approval or, in the alternative, upon registration of the newly issued shares, in exchange for a complete release of all claims. The settlement is subject to certain conditions, which may be waived by Lantronix. The company expects to take a one-time charge in connection with the settlement arrangement of approximately $1.5 million in its financial statements for the fiscal quarter and year ended June 30, 2003, which the company expects to file with the Securities and Exchange Commission 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. on or before September 30, 2003. |
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