SSP Solutions Inc. to Record $1.2 Million Gain and Remove $3.3 Million in Liabilities from Balance Sheet; The Company Will Issue Common Stock as Part of Transaction.Business Editors & High-Tech Writers IRVINE, Calif.--(BUSINESS WIRE)--Oct. 8, 2002 SSP (1) (Service Switching Point) The local exchange node in an SS7 telephone network. The SSP can be part of the voice switch or in a separate computer connected to it. Solutions Inc. (Nasdaq:SSPX SSPX Society of Saint Pius X (international priestly society) SSPX Sustained Spheromak Physics Experiment (Lawrence Livermore National Laboratory) ) providing data security solutions for network communication systems, secure access control, and real-time movement of financial transactions and other valued digital content, today announced the conclusion of its development agreement with Wave Systems Corp. (Nasdaq:WAVX). According to the terms of the agreement, SSP will issue to Wave Systems in full settlement of the original contract 1.6 million shares of SSP Solutions common stock and a $270,000 non-interest bearing note convertible into SSP shares. As a result of this settlement, SSP Solutions will record a gain of approximately $1.2 million in its third quarter income statement, and remove $3.3 million in liabilities from its balance sheet. "This contract settlement will improve working capital and increase SSP's stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. . The contract settlement is one of several initiatives undertaken by SSP during the quarter ended September 30 to improve its balance sheet and lower operating costs," said Marvin Winkler Winkler may refer to:
This agreement was originally entered into by SSP's wholly owned subsidiary 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. , BIZ Interactive Zone Inc. ("BIZ") to port the Wave operating system into a Linux environment for use in commercial markets. In the August 2001 merger of BIZ and Litronic Inc., Litronic changed its name to SSP Solutions Inc. and BIZ became the wholly owned commercial systems subsidiary of SSP. About SSP Solutions Inc. SSP Solutions provides data security solutions for network communication systems. Through its wholly owned subsidiary, Litronic Industries, dba SSP-Litronic, SSP has provided innovative data security solutions for government communications systems for more than 30 years. SSP's NetSign CAC See Consumer Advisory Council. smart card client package and SSP's Argus FORTEZZA products have been chosen by the U.S. Department of Defense to provide network security and desktop protection for many of its organizations. SSP has also been selected by General Dynamics to participate in developing the next-generation PKI (Public Key Infrastructure) A framework for creating a secure method for exchanging information based on public key cryptography. The foundation of a PKI is the certificate authority (CA), which issues digital certificates that authenticate the identity of driven identity management framework for the U.S. Government. SSP is breaking new ground in the next generation of security tokens with its USA Forte Card. For more information, visit http://www.sspsolutions.com or call SSP Solutions at 949/851-1085 or SSP-Litronic at 703/905-9700. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement Under the Private Securities Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Act of 1995 With the exception of historical information, matters discussed in this news release including, any references to future business potential, possible joint business opportunities with Wave and initiatives to improve the company's balance sheet and operating results, are forward-looking statements involving a number of risks and uncertainties and may not be achieved due to factors beyond the company's control, including changing regulatory and technological environments, whether it can continue its relationship with Wave, whether it can increase revenues and continually improve old products and develop new products despite personnel cuts resulting from the company's cost reduction initiatives, its ability to obtain key components from suppliers, technological difficulties, increased competition, and changing customer demands. Other risks inherent in the company's business are described in the Securities and Exchange Commission filings. SSP Solutions undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this release. |
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