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SBS Technologies, Inc. Acquires Bit 3 Computer Corporation; Acquisition Expands SBS Product Markets

ALBUQUERQUE, Nov. 25 /PRNewswire/ -- SBS Technologies, Inc. (Nasdaq: SBSE) ("SBS") today announced the acquisition, for $24 million, of the outstanding common stock of Bit 3 Computer Corporation ("Bit 3"). An initial cash payment of $20 million was funded by an offering of SBS common stock. Subsequent cash payments of $1 million and $3 million will be due to Bit 3 in 1997 and 1998, respectively.

Bit 3 was founded in 1979 and is a manufacturer of computer networking and interconnection hardware for some of the most widely used computer architecture standards in the standard bus embedded computer market. Bit 3's bus interconnect hardware product line complements SBS' existing input/output ("I/O") and CPU product lines, and targets the general purpose segment of the standard bus embedded computer market. For its fiscal year ended December 31, 1995, Bit 3 had pretax income of approximately $4.7 million on sales of $12.5 million. SBS has recorded approximately $9.8 million of intangible assets, including goodwill, as a result of the acquisition. Also in connection with the acquisition, SBS has recorded an $11 million earnings charge. The earnings charge is based on an assessment by SBS, in conjunction with an independent valuation firm, that $11.0 million of the Bit 3 purchase price represented in-process research and development of purchased technology that does not meet the accounting definition of "completed technology." Based on SBS' historical financial performance and the historical financial performance of Bit 3, SBS currently expects to incur a significant net loss for the second fiscal quarter of 1997 as a result of the earnings charge.

"The acquisition of Bit 3 is another step in our strategy of company expansion through a combination of internal growth and acquisition," said Christopher J. Amenson, President and Chief Executive Officer of SBS. "Bit 3's products and markets are complementary to our existing general purpose, embedded computer I/0 and CPU products. Bit 3 serves over 500 customers, many of whom SBS believes may have need for our other products, including the Intel Pentium-based CPU board product line and our IndustryPack(R) I/O products."

Albuquerque-based SBS Technologies, Inc. is a leading manufacturer of standard bus embedded computer components that perform a broad range of central processing unit, general purpose input/output ("I/0") and special purpose I/0 interface functions. For additional information, news releases and quarterly reports, please visit the SBS Technologies, Inc. World Wide Web home page at

Except for historical information contained herein, the matters discussed in this press release may contain forward-looking statements regarding future events or the future financial performance of SBS, and are subject to a number of risks and other factors which could cause the actual results to differ materially from those contained in any forward-looking statements. Among the factors are: general business and economic conditions; customer acceptance and demand for SBS products; SBS' overall ability to design, test, and introduce new products on a timely basis; the nature of the markets addressed by SBS' products; and other risk factors listed from time to time in documents filed by SBS with the SEC.

SOURCE SBS Technologies, Inc.
 -0- 11/25/96

/CONTACT: Jennifer Dalton, Investor Relations of SBS Technologies, Inc., 800-659-6906; or Mark Trinske of Trinske Communications Ltd., 303-665-7760/


CO: SBS Technologies, Inc.; Bit 3 Computer Corp. ST: New Mexico IN: CPR SU: TNM

MZ-SS -- LAM015 -- 3420 11/25/96 07:00 EST
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Publication:PR Newswire
Date:Nov 25, 1996
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